Bornholms Andelsmejeri does not expect profit margins on U.S. exports to decline despite new tariffs

The managing director of Bornholms Andelsmejeri, Per Olesen, believes the dairy will be able to maintain its profit margin on the cheeses it exports to the United States each year.

• We’re not absorbing any of the cost. We’re not reducing our margin. Most of the tariff burden will ultimately fall on American consumers, Olesen told JyllandsPosten.

The additional 15% tariff stems from a new trade agreement that the EU was recently pressured into signing with the United States under President Trump’s administration.

Roughly a quarter of Bornholms Andelsmejeri’s annual revenue comes from cheese exports to the U.S. Each year, the dairy exports between 1,600 and 1,700 tons of cheese to the country.

The cheeses were already subject to tariffs upon entering the U.S., meaning the total duty on the dairy’s exports to the American market will now rise to between 25% and 30%.

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Photo: Bornholms Andelsmejeri