COPENHAGEN (Reuters) -Global freight company DSV said on Tuesday U.S. President Donald Trump’s trade tariffs could curb demand slightly, potentially denting its earnings this year.
Following Trump’s threats to impose tariffs on a range of countries, governments and companies are waiting to see the extent to which he will follow through on his words and how other countries will respond.
“The net effect is hard to predict but there may be a slight decrease in demand. It’s not inconceivable that it will happen,” Chief Financial Officer Michael Ebbe told Reuters.
He said some customers had already changed the timing of orders while they await clarity, but that the impact was marginal.
Ebbe spoke after DSV posted fourth-quarter operating profit, before special items, below expectations. The company said uncertainty concerning the ongoing risk of attacks in the Red Sea as well as possible tariff increases could impact earnings.
“We expect transport markets will continue to grow in 2025 in line with global GDP, but uncertainty remains high due to the macroeconomic and geopolitical situation, including potential trade barriers and tariffs,” the company said in its earnings report.
DSV’s share price fell 3.5% in early trade.
China on Tuesday imposed tariffs on some U.S. imports after the U.S. announced duties on Chinese goods, renewing a trade war between the world’s two biggest economies. Trump meanwhile offered reprieves to Mexico and Canada that he has also threatened with tariffs.
DSV said it expects operating profit before special items this year of between 15.5 billion crowns ($2.2 billion) and 17.5 billion crowns, excluding the impact from its acquisition of Schenker, compared with 17.59 billion expected by analysts and the 16.1 billion it achieved in 2024.
DSV is set to become the world’s biggest logistics company after its $14.6 billion acquisition of Schenker that is on track to close in the second quarter.
($1 = 7.2269 Danish crowns)
(Reporting by Stine Jacobsen; editing by Louise Breusch Rasmussen and Barbara Lewis)
