Denmark is the latest in a series of countries that President-elect Donald Trump has threatened with tariffs — joining a list that includes the 26 other nations of the European Union, as well as Canada and Mexico.
However, if he follows through with imposing tariffs on imports coming from Denmark, it could drive up the already expensive cost of one of America’s fastest-growing obsessions: weight-loss drugs.
Earlier this week, during a press conference at his Mar-a-Lago club in Palm Beach, Florida, Donald Trump said he would impose “very high” tariffs on Denmark if it refused to let Greenland become part of the United States. Greenland, a North American island with a population of nearly 60,000, is an autonomous territory of the Kingdom of Denmark.
Although Denmark ranks just 41st on the list of top U.S. trading partners, the two countries exchanged over $16 billion worth of goods in 2023. Denmark’s top export into the U.S. is packaged medicine, which makes sense considering it is home to pharma giant Novo Nordisk (NVO+2.76%).
The company is the maker of the blockbuster diabetes and weight-loss drugs Ozempic and Wegovy. Soaring demand for these treatments has made Novo Nordisk the most valuable company in Europe, surpassing luxury conglomerate LVMH in 2023. The Danish pharma giant even helped boost the nation’s GDP in 2023 and is expected to have done so again in 2024. The Nordic country’s largest bank, Danske Bank, projects that Denmark’s GDP will grow 2.1% in 2024, driven primarily by Novo Nordisk.
The popular drugs work by mimicking gut hormones that help regulate blood sugar and curb appetite, making them highly sought after for their weight-loss benefits. According to Morgan Stanley (MS+0.77%) analysts, the global market for this class of medications could hit $105 billion by 2030. In the U.S. alone, the bank projects that around 31.5 million people — or nearly 10% of the population — will be using these type of drugs by 2035.
It’s unclear how tariffs on Denmark might affect the price of these medications, which can cost more than $1,000 without insurance, as Novo Nordisk manufactures them at facilities around the world. In June, the company announced it was investing over $4 billion to boost its manufacturing capacity in the U.S.
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