What could a possible tariff war mean for prices?

At Cp Sourcing, we are also closely following developments in the potential tariff war, which is currently on hold except between the USA and China.

Since our customers are typically located in Europe and have production in Asia, we are not directly affected by the high tariffs.

But we can be affected indirectly.

Experts predict that the potential tariff war between the USA and China will increase cooperation between Europe and China and actually lead to lower prices for Europeans. This is especially true if the tariff war escalates to include Europe, prompting Europeans to turn to other markets.

At the same time, there are opportunities to avoid the high US tariffs against China if at least 60 percent of the product’s elements are manufactured in Denmark. This allows the product to be labeled as ‘Made in Denmark’.

For most of our customers, the tariff war will not currently have an impact on exports – but we are following the development.

Container transport is expected to be affected by the tariffs.

We have already seen a “normalization” of prices before the tariff increases. They were available at around 22,000, compared to previous levels of 16,000–18,000.

With less trade across the Atlantic, the need for transport is also expected to decrease. And that will probably mean lower freight prices.

We are already seeing a drop in oil prices because of the tariff threats.

Right now, we can do nothing but follow the development closely.