A new analysis from the Danish Agriculture & Food Council (L&F) reveals that tariffs and increased customs duties will lead to economic losses in both the USA and its trading partners.

• President Trump is proposing a rethinking of the USA’s trade relations with the rest of the world. This makes it crucial for Europe to stand united, as the greatest challenge for Danish and European businesses may very well be the uncertainty, says Flemming Nør-Pedersen, Deputy CEO of the Danish Agriculture & Food Council. He adds that Denmark is already working to establish a dialogue with the new U.S. administration.
• This is essential because a trade war between friends has no winners, he says.

The Danish food cluster is widely recognized as an export-driven sector. Last year, the cluster exported goods worth over DKK 200 billion, with the USA ranking as the 8th most important market. For this reason, the Danish Agriculture & Food Council fully supports the Danish government, which, through diplomacy, is striving to maintain strong ties with the USA.

• Danish diplomacy and the EU system are working tirelessly to ensure that our trade relations with the USA can continue to flourish. For the food cluster, the USA is a key market that has, in recent years, shown an increasing demand for high-quality food products from Denmark, says Flemming Nør-Pedersen.

The new analysis from the Danish Agriculture & Food Council also highlights the potential economic damage caused by tariffs and increased customs duties on both sides of the Atlantic. The study concludes, among other things, that the U.S. economy would be severely impacted if President Trump’s proposed tariffs on China, Mexico, and Canada were implemented. Economic activity in the USA could decrease by 2.8%, while food prices would rise by 5.4%. Naturally, China, Mexico, and Canada would also experience significant downturns, although the impact on the EU would be more limited.

Read the full analysis HERE

Photo: Aaron Burden, Unsplash