The US is one of Denmark's most important export markets – also for Danish SMEs. With the new American trade policy, tariffs on a wide range of EU goods have increased significantly, and despite an agreement between the U.S. and the EU on future trade relations, uncertainty remains high.

In a new CEFAU brief, we examine Danish SMEs' export exposure to the United States in the light of the new trade policy realities.

The analysis shows:

• In 2024, the United States was the fifth‑largest export market for Danish SMEs, and the number of SMEs exporting to the U.S. increased steadily from 2015 to 2024
• Compared to larger firms, Danish SMEs' exports from Denmark to the U.S. are particularly concentrated in sectors with a lower likelihood of tariff exemptions
• SMEs are more vulnerable to rising trade costs than larger firms. They typically have fewer options for bypassing tariff barriers, for example through local production, and they often operate in fewer export markets – making it more difficult to redirect exports elsewhere
• However, only a small share of Danish SMEs with direct exports to the U.S. export a large proportion of their total exports to the U.S
• Overall, the analysis indicates that SMEs are particularly exposed to the new U.S. trade policy direction, but the overall consequences for Danish exports will be limited. This is because SMEs account for a relatively small share of Denmark's total exports to the U.S., and because only a limited number of SMEs are strongly exposed to the American market
• One way to support individual SMEs exporting to the U.S is through export‑promotion initiatives – for example, advisory services on U.S. tariff and export regulations to reduce uncertainty, as well as assistance in identifying new markets.

Read more here