The CEO of the Confederation of Danish Industry (DI), Lars Sandahl Sørensen, is pleased that the EU is coming together for a clear and unambiguous response if US President Trump introduces tariffs. However, the DI director calls on Europe to use this position of strength to try to understand the background to Trump's threats and seek solutions so that a trade war is avoided.
- We must see what is coming and prepare for it. The US is our most important ally, so we must listen to what is being said, says Lars Sandahl Sørensen.
The announcement comes after Prime Minister Mette Frederiksen (S) and other European heads of state and government made it clear on Monday that there must be a "robust response" from Europe if Trump introduces tariffs on European goods.
- It is good that we on the European side are joining forces and preparing for a response. But I think we need to start by putting a lid on things and listening to the demands and analyses that underlie this, says Lars Sandahl Sørensen.
After Trump's election victory, there has been hope from the European side that a trade war could be avoided despite Trump's threats. Among other things, the President of the European Commission, Ursula von der Leyen, has opened up to buying more American LNG gas.
This could help to offset the trade deficit that the United States has with Europe, which according to Trump is unreasonable in light of the fact that the United States is ultimately the guarantor of Europe's security, it has been said.
However, Trump has seriously scared the life out of not only Europe, but the entire world with reports that on Tuesday he will introduce a 25 percent tariff on goods from Canada and Mexico, as well as a ten percent on goods from China.
Hope a negotiated solution can be found
At the same time, Trump said on Monday that he will "quite soon" introduce tariffs on European goods. However, there is no timetable for this or specific information about the size.
- It is very, very drastic. It is a huge self-defeating goal for the US and for Europe and for the world economy. There are only losers in it. If you want to implement such a risky strategy that will create losers, we need to know what the background is. So let's prepare everything we can and then listen carefully to what is being said, says Lars Sandahl Sørensen.
An analysis from the Confederation of Danish Industry shows that the punitive tariffs on Mexico, Canada and China alone will mean that Denmark's gross domestic product (GDP) will be 23 billion. DKK lower in 2027 than in the scenario with unchanged tariffs.
At the same time, according to the analysis, this will mean that employment in Denmark will be reduced by 6,000 people in 2027. The analysis assumes that the US will raise tariffs on goods from Mexico and Canada from the first quarter of 2025 onwards. It is assumed that Mexico and Canada will retaliate in full.
- If the EU is also included in the tariffs, we have a potentially even bigger and more serious situation, says Lars Sandahl Sørensen.
However, he hopes that it is possible to find a negotiated solution. But this requires that the EU, in addition to trying to understand Trump's arguments, also refrain from trying to make individual agreements so that individual EU countries can avoid tariffs:
- The EU must really do what it can to stand together. Unfortunately, we have seen examples of not being able to do so. So it is a historical test that the EU is facing. It can strengthen the EU's unity, but it can also divide the EU, and then we are in a bad place, says Lars Sandahl Sørensen.
/ritzau/
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