The Danish C25 index opened in the red on Monday. After about 30 minutes of trading, the index was down just over two percent.
This comes after US President Donald Trump threatened on Saturday to impose an additional ten percent tariff on goods from Denmark and a number of other European countries from February 1. The background is that the countries have sent forces to Greenland, which according to Trump poses a security risk.
According to the Financial Times, EU countries are considering responding by imposing tariffs on US goods worth a total of 93 billion euros. The media outlet wrote this on Sunday based on information from unnamed officials.
C25 is the leading Danish stock index. The index is composed of the 25 most traded shares on the Copenhagen Stock Exchange measured by turnover.
Palle Sørensen, who is chief economist at Nykredit, points out that initially this is a threat from the US president, and that there is not yet a signed decree. But if the threats are carried out, it will probably negatively affect activity in both the Danish and European economies, he estimates.
- But the consequences of a tariff wall of that magnitude are - as mentioned several times before - manageable. It is probably far from enough to cause a definite decline, Palle Sørensen writes in a note on Monday morning.
In addition to Denmark, Trump wants to impose tariffs on Norway, Sweden, France, Germany, the UK, the Netherlands and Finland. He has also threatened that tariffs on the countries in question will increase to 25 percent on June 1 if an agreement has not yet been reached on "complete and total takeover of Greenland."
/ritzau/
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