- Too early to say whether Trump's customs regime will stop Royal Greenland's US exports

Right now, Royal Greenland's CEO Toke Binzer is on the fence when it comes to comments on whether US President Trump's threats of punitive tariffs on Denmark, among others, could also have consequences for Greenland's largest company.

- Royal Greenland is a socially owned company that works for long-term value creation. We do not comment on international political matters.

- Our experience and presence across continents makes us optimistic about continuing to deliver on our strategic objectives – even in a world of change.

That is the message that Royal Greenland's CEO Toke Binzer sends in a written response in an email to Sermitsiaq.

Economic fist

The United States, with its 340 million inhabitants, is the world's largest economy. These days, Denmark - and thus also Greenland - is turning its attention to this economic power.

The background is that Republican President Donald Trump has announced punitive tariffs against Denmark as well as seven other NATO allies and EU countries that export goods to the United States.

The threat affects the eight countries that have recently sent or are planning to send troops or military equipment to Greenland. In addition to Denmark, these include Sweden, Norway, Finland, France, Germany, the Netherlands and the United Kingdom.

But what will the announced tariffs mean for Royal Greenland's exports of seafood to the US?

- Royal Greenland does not take any action on trade restrictions that have not yet been adopted or implemented. We follow all applicable trade regulations and continuously adapt our business in line with developments in our markets.

- As a global export company, we are used to navigating changing conditions and are continuously working on risk spreading and market diversification, writes Toke Binzer.

40 percent duty

If Trump makes good on his threats, the first punitive tariffs will take effect on February 1. They are 10 percent tariffs on European goods sold to the United States.

The tariff will increase by another 15 percent to 25 percent on June 1. Unless an agreement with Denmark on the sale of Greenland to the United States has been implemented.

So from June 1st, the tariff on European goods will be a total of 40 percent, as there is already a 15 percent tariff, if a solution is not found to the situation regarding Greenland.

Turnover of 1 billion kroner in North America in 2024

The USA is an important market for Greenland's largest company, self-governing Royal Greenland. In 2024, the group had a turnover of one billion kroner in North America. This corresponds to 18 percent or almost a fifth of the group's total turnover.

The company does not yet have the final figures ready for 2025, Binzer says.

Royal Greenland goods to the USA are exported both via Denmark and Canada.

For example, the company exports both Greenlandic shell shrimp and Nutaaq cod, which are produced at Royal Greenland's factory in Maniitsoq, to the USA.

- We are generally experiencing great interest in Royal Greenland products with high quality and documented origin, says the CEO.

But what will the announced US tariffs mean for the high-profile and important export of Nutaaq cod?

- Nutaaq is a strategically important product for Royal Greenland. And over time, we have built a broad customer base in several markets.

- We are continuously assessing how framework conditions affect our production distribution and sales strategies. However, we do not comment on hypothetical consequences until market measures have come into effect, says Toke Binzer.

Will Trump's tariff regime lead to a halt to all your exports to the US?

- It is too early to conclude. Royal Greenland has a flexible and robust business model with sales to a number of markets globally. We are continuously assessing our market opportunities and adapting accordingly. As we have done for many years, the CEO writes to Sermitsiaq.

Denmark is unlikely to be overthrown

Although the United States can make Denmark falter, Denmark is unlikely to be overthrown.

This is what Politiken writes in the article "Economists: Trump could hit Denmark hard – but it is unlikely to happen" on Tuesday, January 20.

The article says that, according to economists, Trump could hit Denmark hard with punitive tariffs, but that is unlikely to happen.

- Our main scenario is that this ends with little or no damage to the Danish economy, says chief economist Søren Kristensen from AL Sydbank to Politiken.

Higher tariffs on European goods will mean higher consumer prices in the US, where many voters today think prices are too high. The paradox is that Trump was elected on lower prices.

Nathanielsen to meet with business community

On Friday this week, the Minister of Commerce for Greenland, Naaja H. Nathanielsen, IA, called the board of directors of the Greenland Chamber of Commerce and the management of the self-governing limited liability companies to a meeting.

- The call is due to the unrest that has arisen in the wake of the US President, Donald Trump, having publicly desired American ownership of Greenland, writes Naalakkersuisut in a press release.

The press release further states:

"The purpose of the meeting will be to provide an update on the situation and ensure that the Government of Greenland and the parties concerned have a common understanding of the current developments and the possible consequences for Greenland of the President's actions."