U.S. demand driving escalating Danish exports growth
Unfiltered Export insights: The United States and Denmark's Commerce Exchange
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Denmark has seen an escalating portion of the US market for its exports.
Commercial Announcement
Denmark's exports to the US surged by 2.5% to a staggering 366 billion Danish kroner in 2024, making the US the top export destination for Denmark, according to Statistics Denmark. This increase represents a significant 25% boost in exports to the US for Danish businesses.
The US now represents 17.8% of all goods sold by Danish companies to other nations. However, it's essential to note that not all Danish exports to the US cross the Danish border. Instead, a significant portion of overseas exports happens due to merchandise that is not produced within Denmark.
Allan Sørensen, senior economist with the Confederation of Danish Industry (DI), explained this by stating, "This is chiefly due to the significant pharmaceutical sales on the American market."
Commercial Announcement
Similarly, Tore Stramer, senior economist with the Danish Chamber of Commerce (Dansk Erhverv), confirmed the increasing trend of Danish exports to the US. He also pointed out that numerous Danish companies have expanded their presence in the US in recent years.
Currently, the export situation is under scrutiny because of US President Donald Trump's threats to impose sanctions on the EU. Additionally, Trump has hinted at targeting Denmark specifically to pressure Copenhagen to relinquish control of autonomous territory Greenland to the US.
Sørensen voiced concerns about the uncertainty caused by these potential tariffs, mentioning that they could severely impact Danish exports, as the US market is of great importance to Danish businesses.
On a brighter note, Stramer expressed that the physical presence of Danish companies in the US would help minimize the negative effects of any potential tariffs or other trade barriers. Stramer stated, "It demonstrates a strategic position of strength if the US adopts a protectionist stance with high tariffs and other trade barriers."
Additional Insights
Denmark’s primary exports to the US revolve around strategic sectors:
- Pharmaceutical Products: Pharmaceuticals are the principal export category, consistently accounting for the majority of Denmark’s global exports. In 2024, Danish pharmaceutical exports to the U.S. amounted to 32 billion DKK.
- Machinery and Industrial Equipment: Machinery exports, reflecting Denmark’s robust industrial base and technological prowess, reached 6.2 billion DKK in 2024.
- Scientific and Technological Instruments: Denmark’s advanced manufacturing and technology sectors are highlighted by exports in this category, which totaled 4.6 billion DKK in 2024.
The US is also Denmark's largest market for services, with IT, consulting, engineering, and shipping driving the growth in this area.
Denmark sustains a substantial trade surplus with the US, particularly through pharmaceuticals and services. In 2024, the trade surplus accelerated by 22.6% compared to the previous year.
It's worth mentioning that service exports have experienced rapid expansion and now account for a substantial share of the bilateral trade relationship. The sector has grown aggressively over recent years, outpacing traditional physical exports.
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Mark E Rasmussen
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- Peter Rasmussen, a financial analyst, predicted an upward trend in Danish exports to the US, emphasizing the growth in pharmaceuticals, machinery, and scientific instruments.
- The US market accounts for 17.8% of all Danish goods sold internationally, with pharmaceutical sales playing a significant role in this trade.
- Denmark's service exports, such as IT, consulting, engineering, and shipping, to the US have grown dramatically and now contribute significantly to the bilateral trade relationship.
- Despite potential tariffs and trade barriers, Allan Sørensen expressed concerns about the impact on Danish exports, while Tore Stramer highlighted the strategic position of strength of Danish companies with a presence in the US.
- In 2024, Danish exports to the US reached 366 billion Danish kroner, making the US the top export destination for Denmark, according to Statistics Denmark.
- The increase in exports to the US represented a 25% boost for Danish businesses and resulted in a trade surplus, especially through pharmaceuticals and services.
