Because of the policy of neutrality, the government of Sweden did not get involved in the trading policy. Truly, Sweden supply iron to German during World war II but the country did not take sides with the central power or allied forces. Sweden along side with Spain and Switzerland, are the 3 countries that did not partake in any of the World Wars.
It is true that during World War II, Sweden provided Germany with iron ore. In fact, one report states “trade from Sweden to Germany eventually became so large that ten million tons of iron ore per year was shipped to the Third Reich. The government did not interfere with the trade because of its official policy of neutrality”. It’s also true that Germany provided Sweden with much needed coal.
It’s very interesting to note that Sweden was the recipient of Nazi gold, and other treasures, mostly taken from the Jewish people. Sweden wasn’t perfectly neutral because there are also many examples of them also helping the allied forces. So I believe they stayed out the war formally by playing both sides.