A Danish business economist has stated that the recent 20 percent tariff on EU goods imposed by US President Donald Trump will have limited impact on Danish furniture manufacturers, as local markets are significantly more important.
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In 2024, Danish furniture exports fell by three percent to 19.2 billion kroner, showing signs of stabilisation after an 11 percent drop in 2023. While exports to Germany, Norway, and Sweden declined by eight, nine, and 16 percent respectively, exports to Poland and Switzerland increased by six percent each.
Despite the current geopolitical tensions, exports to the United States rose by 17 percent in 2024, making the US the most prominent of the top ten export markets. However, the American market still accounts for only five percent of the total export volume of Danish-designed furniture.
The economist noted that local European markets remain crucial for Danish furniture producers, as they rely heavily on consumer purchasing power and economic stability within the region. Although the threat of tariffs on all EU goods poses a potential risk, most companies are more dependent on regional demand.
Improved economic conditions, including lower inflation and higher wages, have boosted consumer optimism in Europe, contributing to more stable furniture export trends in late 2024. The industry has also shown a gradual recovery in production after notable declines during 2022 and 2023, when both exports and domestic demand significantly weakened.
While competition for orders remains intense, industry experts remain cautiously optimistic about continued stability in the coming year, supported by improving market conditions in Europe.
Source: www.wood-supply.dk