Apparently, US trade wrath isn’t just reserved for China.
Danish business is reeling from the news that US President Donald Trump has levelled trade tariffs on European goods worth an estimated 51 billion kroner.
The confederation of Danish industry, Dansk Industri (DI), estimates that the move could put 700 million kroner’s worth of Danish exports in the firing line.
“A few months ago, the US made public lists of goods that it is considering going after and Danish exports stood to be impacted by at least 700 million kroner. Food products – such as dairy products, fish and biscuits – look to be the hardest hit,” said Peter Thagesen, DI’s head of international market policy.
Everyone stands to lose
Thagesen went on to say that he fears the transatlantic co-operation will only continue to deteriorate, particularly given that there is a risk of further tariffs being in the pipeline for cars and car parts from the EU in the near future.
The latest trade conflict stems from this week’s World Trade Organisation (WTO) verdict that ruled in favour of the US in the case involving the French aeroplane producer Airbus illegally receiving EU funding.
Interestingly, WTO is also looking into whether US aviation producer Boeing was also given illicit state funds and, if that is found to be the case, WTO will approve the EU to levy tariffs on US products. But DI, for one, hopes a solution without any tariffs can be found.
“The US is one of our most important export markets, and it is clearly in Denmark’s interest to maintain a strong transatlantic relationship,” said Thagesen.
“So we hope the authorities will soon reach a solution that avoids a trade conflict that everyone loses in.”