President-elect Donald Trump has recently expressed interest in purchasing Greenland from Denmark, a move that could potentially impact the prices of popular weight-loss and diabetes drugs in the United States. Trump has threatened to impose high tariffs on Denmark if they refuse to sell the strategically important North American island to the United States, even hinting at the possibility of using military force to acquire it.
While high tariffs on Danish goods may not have a significant impact on American consumers due to Denmark's relatively small share of total US imports, the pharmaceutical sector could be affected. In 2023, the United States imported approximately $5.7 billion worth of pharmaceutical products from Denmark, with Novo Nordisk, a Danish pharmaceutical company, being a key player in the market.
Novo Nordisk produces popular drugs like Ozempic and Wegovy, which have seen a surge in demand for their effectiveness in treating diabetes and obesity, respectively. The market value of Novo Nordisk has soared to nearly $300 billion, reflecting the growing popularity of these medications among Americans.
If Trump follows through with imposing steep tariffs on Denmark, it could lead to a temporary increase in consumer prices for drugs like Ozempic and Wegovy. Trade experts suggest that such tariffs could impact the affordability of these medications for American consumers, potentially affecting individuals relying on them for managing their health conditions.
