A trade conflict between the European Union and the United States could severely impact Denmark, potentially costing around 16,000 jobs and reducing the Danish economy by up to 47 billion kroner (approximately €6.3 billion). These figures come from an analysis conducted by the Confederation of Danish Industry (Dansk Industri), recently reported by Ritzau.
Significant risks for Danish exports
Donald Trump previously hinted that the EU could become the next target in his ongoing trade disputes. According to Allan Sørensen, Chief Economist at Dansk Industri, tariffs imposed by the US on European goods could reach as high as 25%, a move that could swiftly be enacted and deeply impact Danish exports.
“Almost regardless of which scenario unfolds, the implications for Denmark and the Danish economy would be substantial if tariffs are imposed on Danish goods entering the US,” Sørensen explained.
The analysis conducted by Dansk Industri estimates repercussions over a five-year period. However, Sørensen warns that consequences could manifest much sooner. Industries reliant on exports to the United States, particularly pharmaceuticals, machinery, and agricultural products, could be among the hardest hit.
Broader EU-US tensions
The potential escalation follows a period marked by heightened trade tensions globally. Previous tariffs by the Trump administration on steel and aluminum imports have already strained economic relations between the EU and the US. Further escalation could significantly disrupt the Danish market, highlighting Denmark’s economic vulnerability to international trade disputes.
Dansk Industri urges Danish companies to closely monitor developments and prepare strategies to mitigate potential impacts. This situation underscores the interconnected nature of global economies and the profound risks associated with protectionist trade policies.
