"When the talks come to a potential trade war with China, we sit up and listen," CEO Soren Skou said in an interview, reported Bloomberg. "That would have a very negative effect on our business."
Maersk expects the global shipping market to grow about two to four per cent this year, helping it raise its profit from freighting goods by at least US$1 billion. But a full-fledged trade war between the US and China could ultimately make a mockery of such forecasts. Mr Trump's rhetoric so far suggests he's ready for battle, with accusations of currency manipulation being hurled at China.
Goldman Sachs analysts estimate that if Mr Trump were to impose tariffs against China of up to 10 per cent, the country's exports to the US would decline by up to 25 per cent. That could erode China's economic growth by as much as one percentage point.
The problem with such strategies is that they often provoke retaliation. The Goldman analysts predict a Chinese response could shave as much as a quarter of a percentage point off US gross domestic product. In other words, the world's two largest economies would suffer significant trade-related losses that would undoubtedly have a knock-on effect across the globe.
While the fallout of Mr Trump's trade policies looks alarming to Maersk, the company is more positive on what it's hearing on tax proposals coming from the White House.
"The new administration in the US wants lower taxes and it's also planning huge investments in infrastructure," Mr Skou said. "And that will, without a doubt, mean more imports for the US, which is good for our business."
Maersk expects the global shipping market to grow about two to four per cent this year, helping it raise its profit from freighting goods by at least US$1 billion. But a full-fledged trade war between the US and China could ultimately make a mockery of such forecasts. Mr Trump's rhetoric so far suggests he's ready for battle, with accusations of currency manipulation being hurled at China.
Goldman Sachs analysts estimate that if Mr Trump were to impose tariffs against China of up to 10 per cent, the country's exports to the US would decline by up to 25 per cent. That could erode China's economic growth by as much as one percentage point.
The problem with such strategies is that they often provoke retaliation. The Goldman analysts predict a Chinese response could shave as much as a quarter of a percentage point off US gross domestic product. In other words, the world's two largest economies would suffer significant trade-related losses that would undoubtedly have a knock-on effect across the globe.
While the fallout of Mr Trump's trade policies looks alarming to Maersk, the company is more positive on what it's hearing on tax proposals coming from the White House.
"The new administration in the US wants lower taxes and it's also planning huge investments in infrastructure," Mr Skou said. "And that will, without a doubt, mean more imports for the US, which is good for our business."