New US tariffs – what does it mean for Danish companies in the energy sector?

Increased pressure on Danish exports and global value chains

In March and May 2025, the US government imposed or threatened a series of new tariffs on imports of European goods, including a 25% tariff on steel and aluminum and a threat of a 50% tariff on selected EU goods. These measures are part of the so-called “Trump Reciprocal Tariff Act”, which aims to equalize tariff differences between the US and the EU. The EU has responded with countermeasures that will hit US industrial goods and agricultural products, among other things.

Consequences for Danish companies in the energy sector

Although the direct impact on Denmark is limited, there may be derived consequences for Danish companies, especially in the energy sector:

• Increased production costs: Increased tariffs on steel and aluminum can lead to higher prices for these raw materials, affecting companies that produce energy equipment and components.
• Supply chain disruptions: Companies with production in the US or reliance on transatlantic suppliers may experience delays and increased costs due to tariffs and countermeasures.
• Currency risks: Trade uncertainty and potential exchange rate fluctuations can affect export revenues and require increased attention to financial risk management.

Recommendations for Danish companies

To some extent, the uncertainty can be compared to the conditions when the Covid 19 pandemic appeared and companies had to organize themselves in a new way and prepare for sudden changes.

To meet the new challenges in customs, we recommend the following:

1. Review supply chains: Identify dependencies on US suppliers and consider alternative sourcing options.
2. Evaluate contracts: Check existing contracts for force majeure clauses and price adjustments in case of tariff changes.
3. Consider customs optimization: Explore options for duty exemptions, bonded warehouses or changes in country of origin to minimize customs costs.
4. Strengthen currency management: Implement strategies to manage currency risks, including the use of financial instruments.
5. Stay updated: Follow developments in trade negotiations and be prepared for further changes in tariffs and trade agreements.

Contact us

At SAAF, we are ready to advise on contract adjustments and strategic risk management in light of the new trade barriers. Contact us for a no-obligation discussion on how your business can best navigate the changing trade landscape.