The Swedes, triumphant in Danish-ruled Norway in the Danish-Swedish War of 1563-1570 (Northern, or Scandinavian, Seven Years War), had subsequently lost their captured territory, while the Danes had similarly been unable to retain their conquests.

John ends the Scandinavian Seven Years' War in 1570 without many Swedish concessions: by the terms of the peace signed at Stettin, the borders of the two nations remain essentially unchanged: Denmark receives Gotland and Elfsborg (Alvsborg), along with some monetary reparations, from Sweden.

Denmark is provisionally granted the right to display the Swedish triple-crown insignia, but Sweden is barred from incorporating Danish or Norwegian arms.