A Danish furniture manufacturer may be affected by potential US tariffs on European goods. The company, based in East Jutland, exports approximately 10% of its revenue to the United States, equating to around DKK 110 million of its DKK 1.1 billion turnover in 2024.
A 25% tariff has already been imposed on imported steel and aluminium from Europe, but other goods have not yet been affected. If additional tariffs are introduced, the company, Tvilum's landed cost in the US could increase, likely leading to higher prices for American consumers.
Peter Bager, Tvilum's Chairman of the Board, has acknowledged the potential impact but remains pragmatic, stating that it would be "irresponsible not to follow" developments, while also noting that "it will be the same conditions for everyone." Tvilum currently has no plans to establish production in the US, despite the potential tariff implications.
The company operates an office, warehouse, and distribution centre in the US, but unlike some larger Danish firms, it does not manufacture within the country. Companies producing domestically in the US may avoid these tariff costs.
Despite the tariff challenges, Tvilum remains optimistic about its financial outlook, predicting a pre-tax profit of between DKK 40 and 50 million for the current year. This follows a significant turnaround in 2024, when the company reported an operating profit of DKK 64 million, compared to losses of DKK 46 million and DKK 90 million in the preceding two years.
Bager attributes the improvement to restructuring efforts and stronger customer agreements, though he acknowledges the current challenges facing the furniture market. Tvilum's recent financial performance demonstrates resilience despite external economic pressures.
Source: www.wood-supply.dk