There is "every reason to be cautious", at least until we see what Trump actually plans to do once he is sworn in as president. This is according to Lars Sandahl Sørensen, CEO of the Confederation of Danish Industries, following Trump's announcements to impose tariffs on Danish goods in the case of Greenland.
- No one has an interest in a trade war with an ally, and we have a very good relationship with the US. Danish companies are very committed and invested in the US, which is our most important trading partner and closest ally, he says in a written comment.
The incoming US president, Donald Trump, said at a press conference on Tuesday that he could not rule out the use of economic or military coercion to gain control of the Panama Canal and Greenland. He also said that he is considering imposing a special tariff on Danish goods if Denmark does not agree to sell Greenland to the US.
Prime Minister Mette Frederiksen (S) said on Tuesday to TV 2:
- I think we should stick to trading with each other and do it in a proper way.
DI is in line with the Prime Minister
Lars Sandahl Sørensen agrees with this statement.
- We completely agree with the line the Prime Minister has taken. And we trust that the government is working hard to find the best possible path forward for the Commonwealth. From the Danish business community's side, we also have close and constructive cooperation with Greenland, and we naturally want to continue that in every way, he says.
The threat of a possible tariff on Danish goods has already been felt in Denmark. Vestas and Ørsted shares fell 7.4 and 5.8 percent respectively on Wednesday. This was clear when the stock exchange closed at 5 p.m. on Wednesday.
According to Jacob Pedersen, head of equity research at Sydbank, there is a direct causal connection between Trump's statements and the price drops.
- It is already known that Trump is not a fan of wind energy, but investors are nervous, and therefore such news often leads to a strong reaction in the market. And it has been given an extra twist this time in that he is not only thundering against wind turbines, but also specifically against Denmark and mentioning a punitive tariff on Danish goods, he said earlier on Wednesday.
However, he is a little surprised that the price drops are as big as they are.
/ritzau/
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
