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In Swedish ”te” is what is usually refeerrd as a tea (in England for example). Herbal tea is ”chai” in Swedish

I think “chai” is not really a Swedish word, but a word recently imported by the cafes, signifying some kind of tea-based beverage.

Herbal tea is örtte (lit. herb + tea). Chai is something different.

Correct. When we swedes say "chai" we actually mean "masala chai".