Danish export companies will be closely watching on Wednesday evening when Donald Trump is expected to launch a series of new tariffs on foreign goods. This could hit a large number of Danish companies with possible tariffs of up to 25 percent on several product groups.
- What many Danish companies are pondering is how Trump's announcement could hit them with their precise supply chain, says Michael Bremerskov Jensen, head of global market development at the Danish Confederation of Business.
Therefore, the considerations are whether the companies should geographically move production.
- The companies are looking at where it would be best to send the goods to the US from in terms of tariffs, says Michael Bremerskov Jensen.
Previously, Trump has warned that the EU will be hit by a tariff of 25 percent. on cars exported to the US, as well as steel and aluminum.
The president has said that his tariff policy is about strengthening production internally in the US. At the same time, he will respond to other countries' tariffs on American goods.
- Normally, everything moves incredibly slowly regarding tariffs, but now it's all flying around our ears. All norms have been broken, says Michael Bremerskov Jensen.
Many Danish companies produce their goods in Denmark and ship them from here to the US.
- If that is the case, the tariffs that we expect Trump to introduce cannot be avoided, he says.
An analysis from March by the Danish Labor Movement's Business Council shows that the share of Danish exports that are sensitive to tariffs from the US has fallen and is at the lowest level in six years. Denmark's total exports to the US in 2024 had a value of 366 billion. kr.
Only 17.5 percent of total exports were physically transported from Denmark to the USA - equivalent to 64 billion kr.
This is because several Danish companies have moved production to the USA and thus avoid tariffs. This applies to certain Danish pharmaceutical companies.
- In Denmark, however, we are affected indirectly, states Michael Bremerskov Jensen.
This happens, for example, when a Danish company sends components to a German car manufacturer.
If, as expected, car exports are subject to tariffs, there will be less need for Danish spare parts, it is said.
jel /ritzau/
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