Small and medium-sized enterprises do not have production within the US customs walls to the same extent as large companies, and therefore they will be hit relatively harder by a possible Trump tariff.
Small and medium-sized enterprises have exports to the US of around DKK 12 billion, and therefore the companies will listen with concern when the new US president is inaugurated on Monday and gives a speech. This is according to Jakob Brandt, director of SME Denmark, which represents small and medium-sized enterprises.
- For the individual company, it can simply be critical to survival if you have invested heavily in the US market and can thus receive a very high tax, he says.
Donald Trump has threatened to raise tariffs against Denmark, but without being more specific. If Denmark does not help the US gain control of Greenland, the US will instead raise tariffs, the incoming president recently said.
The US is Denmark's largest export market, to which Danish companies sell around DKK 300 billion each year. According to the Danish Chamber of Commerce, 75 percent of Danish exports to the US come from companies' factories in the US. These will typically be large Danish companies.
Danish Chamber of Commerce: "We are following the situation closely"
Danish Chamber of Commerce is careful not to comment more specifically on Trump's threats, because no one knows whether they will come true, and if so, how. In a comment, director Morten Langager says that for both small and large companies there is "uncertainty about the playing field".
- But we are following the situation closely and are not involved in speculation. And if the playing field changes, we and the companies will take stock of the situation and act accordingly. And if there is one thing that Danish companies can do, it is to act and adapt.
It is not the case that companies will just sit down and give up if tariffs are imposed, and many have also made their preparations, says Jakob Brandt. One possibility is, for example, that you can move parts of your warehouse to the USA and thus be within the customs walls.
- There are worried faces out there, but business leaders are used to dealing with sudden crises, says Jakob Brandt.
But that is why there is still nervousness.
- We do not know what the probability is that tariffs will come. Trump is playing on unpredictability. And if there is one thing we do not like in business, it is unpredictability, says Jakob Brandt.
/ritzau/
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