First, it was said that goods from China would be subject to a punitive tariff of 60 percent, and goods from Europe would be 10 percent more expensive to import in order to secure American jobs.
Now, it is being reported from the incoming US president, Donald Trump, that imported goods from Canada and Mexico will be subject to a tariff of 25 percent on top of that, because the two countries are not putting enough effort into slowing the flow of the narcotic drug fentanyl into the US.
For the same reason, he will also increase the tariff rate on goods from China by 10 percentage points.
Peter Bay Kirkegaard is senior chief consultant for global trade and investment at the Confederation of Danish Industries. He expects that we will hear similar announcements continuously up until January 20, when Trump is officially inaugurated as president.
And he is not sure that all the promises will come true.
- I think you have to see the 25 percent as a negotiating proposal for Canada and Mexico.
- Now it's up to them to come up with suggestions on how they want to do something about the problem, and then there will be a negotiation.
- This is very much in line with how Trump has acted previously. Threats work in his view, and that is why it is probably a foretaste of more of that kind to come, says Peter Bay Kirkegaard.
He assesses that Trump's changing threats create insecurity and concerns in boardrooms and in management corridors at Danish companies that export to the US.
- The many announcements make it very difficult to plan how to approach the US market.
- Some companies have already made sure to get a lot of goods into the US, so they have a warehouse.
- But that is not a viable solution, and it is also expensive to have large warehouses lying around, says Peter Bay Kirkegaard.
He is aware that Donald Trump's underlying agenda is to get companies to produce in the US.
- But moving your production there does not solve all problems, because you also have to have imported goods for your production, which may be covered by new tariffs, because they come from Canada or Mexico, for example.
- At the same time, the American economy is running at full speed, so it is not easy to get hold of labor, he says.
The USA is Denmark's largest export market. Last year, Danish companies exported goods and services worth 292 billion kr.
Almost half of the total export of goods and services to the USA has never crossed the Danish border. This happens, for example, when a company produces goods in the USA, which are sold to American consumers or companies.
/ritzau/
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