Danish companies are soaring on the stock exchange on Thursday morning, but the zigzag course that the US president has shown creates great uncertainty. This is the assessment of Peter Bay Kirkegaard, senior chief consultant in the Confederation of Danish Industry's department for global trade and investments.
- When you are the world's largest economic superpower, you have to be careful what you say, because words matter, and it creates uncertainty in the market. And uncertainty is bad for companies, he writes in a comment.
On Wednesday evening Danish time, US President Donald Trump announced that he has approved a "pause" of 90 days, where the tariff will be 10 percent. for a large number of countries. At the same time, Trump announced that the tariff on Chinese goods will be increased to 125 percent.
And this is, in isolation, positive news for Danish companies, emphasizes Peter Bay Kirkegaard. But when the announcements change in this way from day to day, it creates uncertainty about US policy and which rules apply, it says.
Jacob Pedersen, head of equity research at Sydbank, also emphasizes in an analysis that Trump's changing announcements are "disturbing" for companies that trade with the US. Because even though the postponement is good news, it does not change the uncertainty about what lies ahead, it says.
- This uncertainty lowers visibility and slows down possible investments. A completely bad situation, but despite everything with hope for a better outcome in 90 days than a sky-high retaliatory tariff, writes Jacob Pedersen in the analysis.
jel /ritzau/
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