Husqvarna Shifts Production as US Considers 30% EU Tariffs

Sweden's Husqvarna AB is actively restructuring its supply chain to mitigate the adverse effects of escalating global trade tensions, particularly potential increases in United States tariffs on European imports, as Chief Executive Officer Pavel Hajman articulated. In an interview with Reuters on July 18, 2025, Hajman emphasized the company's vulnerability, noting that approximately two-thirds of Husqvarna's sales in the United States derive from imported products, with half originating from Europe and the remainder from China and other regions. He stated, "We are worse off because we have two-thirds being imported into the U.S., irrespective of whether it's China or Europe."

The proposed tariff escalation from 10% to 30% on European Union goods has prompted Husqvarna to implement several strategic adjustments. These include relocating production of select items from China to European facilities, redirecting shipments destined for Canada to bypass United States distribution centers amid concerns over trade frictions between Washington and Ottawa, and engaging in negotiations with suppliers to counteract cost inflation induced by tariffs. Hajman advocated for diplomatic engagement, remarking that a 30% tariff hike "would not be good for Husqvarna" and underscoring the necessity for "constructive dialogue between Washington and Brussels."

These measures align with broader efforts to address financial pressures, including currency volatility and elevated raw material costs, as outlined in Husqvarna's interim report for January to June 2025. The company prioritizes price adjustments and supply chain optimization while advancing cost-saving initiatives. Notably, Husqvarna has shifted focus toward higher-margin offerings, such as irrigation systems and robotic lawn mowers, with the latter experiencing a 15% sales increase in the recent quarter despite intensified competition from Chinese manufacturers.

This development occurs within the context of heightened United States-China and United States-European Union trade disputes under the current administration, which have imposed additional burdens on multinational firms reliant on cross-border supply chains. As of July 18, 2025, Husqvarna continues to monitor these dynamics closely, with Hajman expressing optimism that proactive adaptations will safeguard the company's operational resilience

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