Trump's "Big Beautiful Bill" – 5 ways it may affect you as a Swedish investor

Most people are likely aware that major economic developments are unfolding in the U.S., as Donald Trump’s budget proposal, “The Big Beautiful Bill,” has now been passed and signed into law. It’s a highly controversial economic package with potentially far-reaching consequences—not just for the U.S., but also for you as a Swedish investor.

Here are five ways you may be directly affected:

1. Lower returns on many investments

The budget gives the U.S. the right to impose a penalty tax of up to 20 percent on dividends, royalties, and capital gains from investors in countries deemed to “discriminate” against the U.S. Sweden has been highlighted as likely to appear on that list.

Additionally, the bill reduces benefits for companies with “links to entities of special concern,” making it harder for businesses connected to China or other U.S.-flagged regions to operate within or with the U.S. For you as an investor, this could mean significantly lower returns on U.S. stocks and funds—and potentially deteriorating conditions for investments in other global markets as well.

2. Reduced support for green energy

Trump’s budget eliminates several of Biden’s previous green tax credits, which would slow investments in renewable energy. If you’ve invested in green energy funds or climate-focused companies, they may now face greater challenges in the U.S. This could impact the global renewable energy market and, in turn, your investments in that sector.

3. Swedish companies with U.S. exposure may face headwinds

Swedish companies that operate in or have significant ties to the U.S. may be negatively affected by the reasons mentioned above. If you have holdings in such companies—or in entities heavily reliant on doing business with them—you may see pressure on share prices and overall returns.

4. Rising national debt and economic uncertainty may fuel market volatility

Trump’s budget is funded by increased government spending and reduced tax revenues, which is expected to lead to a growing U.S. national debt. This could undermine confidence in the U.S. economy, drive up interest rates, and create uncertainty in stock markets—including in Sweden.

The fact that the U.S. economy affects the global market is nothing new, but this budget contains multiple shifting variables at once. A sharply increasing U.S. debt level will almost certainly make waves across global financial markets.

5. Your pension funds may be affected

Swedish pension funds—many of which are heavily exposed to the U.S. market—also risk being affected, primarily due to the factors listed above.

In times of geopolitical uncertainty and stock market volatility, it can be wise to hold part of your savings in assets that aren’t directly tied to the stock market. Investments in loans are one such alternative: they offer stable returns and serve as an effective source of portfolio diversification.

Do you have questions about how investments in loans work or how to adjust your savings strategy in this environment? Don’t hesitate to reach out—we’re here to help!