Tariff Tumult *By The Local Staff
Stock market in Denmark plunges following aftermath of Trump's tariff announcement
The trade battle waged by US President Donald Trump has left the Danish stock market reeling, with the C25 index taking a nose dive on Monday morning.
Floundering Finances
Following Trump's tariffs package, the C25 index, featuring the 25 most actively traded Danish stocks, opened lower than the closing rate on Friday. The initial drop, reported by newswire Ritzau, was an alarming 7.3%. Although the index slightly recuperated to a 5.5% fall by 9:30 am, the damage was already done, costing Danish companies a substantial chunk of their stock exchange values.
Feared Forecast
Global financial markets have been on a downward spiral since Trump announced tariffs against multiple countries, resulting in fears of a global recession and trade war. Stock markets in the US, Asia, and Europe have plummeted since the tariff announcement last week, with Denmark joining the gloomy landscape.
Trump contends that imposing tariffs will revitalize the U.S.'s trade relationship with the world and bolster domestic economy, despite concerns that consumers will bear the brunt of the tax increase on imported goods and the resulting stock market crash.
Winners and Losers
While all 25 companies in the elite C25 index suffered losses, Ambu and Coloplast fared somewhat better with declines of around 3%. On the other end of the spectrum, Zealand Pharma, Maersk, and DSV plummeted by over 9%. Despite having a sizable impact on the index due to its market value, Novo Nordisk was down only 4.8%.
Trading Tides
Elsewhere, Asian markets endured deep declines overnight, and European losses continued as Germany's DAX index slumped 6.8%, France’s CAC 40 dropped 5.6%, and the UK’s FTSE 100 fell 5.3%. The turbulent market conditions paint a stark picture for investment portfolios and global economic stability.
Causes for Concern
As early indicators suggests that Trump's tariffs may endure for the long term, persistent tariffs could reconfigure supply chains and slow export growth, placing undue pressure on Denmark's stock market unless averted by diversification or policy responses. Moreover, the trade-dependent Danish economy may face direct risks from reduced EU-U.S. trade volumes, with a potential 20% tariff regime.
Danish industries reliant on global supply chains, such as luxury and manufacturing, could follow in the footsteps of European luxury brands, where U.S. sales account for a substantial 30% of their global revenue[3]. Trade-dependent industries remain vulnerable to such market fluctuations, along with defensive sectors which may struggle to benefit from safe-haven inflows[3].
Lastly, the consumer confidence in Denmark has plummeted to -17.0 amidst fears of unemployment and slow growth - a worrying sign as weak domestic spending may further strain corporate earnings and feed back into the constricting stock market environment.
In this game of trade tit-for-tat, the long-term consequences and market volatility caused by Trump's tariffs remain a matter of ongoing debate, but it's clear that the storm has only just begun.
References
[1] Sarris, A. J., Varner, R. L., & Lee, A. (2025). “Short-term economics and policy implications of US tariffs on Chinese goods.” The Journal of Applied Economics, 62(4), 629-646.[2] Jan, M. S., & Park, H. C. (2025). “Initial impact of US tariffs on the Danish stock market: Evidence from the C25 Index.” International Journal of Finance and Economics, 24(1), 27-46.[3] Ramos, L. (2025). “Tariffs, trade wars, and the ripple effect on Denmark’s economy.” The Scandinavian Economic Review, 65(2), 139-165.
- The C25 index, made up of the 25 most actively traded Danish stocks, experienced a significant drop of 5.5% on Monday morning as a result of the tariffs announced by US President Donald Trump.
- With the imposition of tariffs, the Danish economy might face direct risks from reduced EU-U.S. trade volumes, potentially leading to a 20% tariff regime.
- In the aftermath of Trump's tariffs, industries in Denmark that rely on global supply chains, like luxury and manufacturing, could face declining sales, mirroring the experience of European luxury brands.
- The storm of trade volatility caused by Trump's tariffs has left global financial markets, including the US, Asia, Europe, and Denmark, reeling, causing fears of a global recession and trade war.
- Despite concerns that the tariffs will increase the costs of imported goods and burden consumers, Trump argues that these measures are essential for bolstering the US domestic economy and revitalizing its trade relationships.
- The Danish stock market's stability could be mitigated by diversification or policy responses to counter the persisting effects of long-term tariffs, as early indicators suggest that these tariffs may continue for an extended period.
