President-elect Donald Trump has threatened to impose "very high tariffs" on Denmark if the country refuses to allow Greenland to become a part of the U.S., The New York Times reported Jan. 8.
Such a move could pose significant consequences for healthcare, specifically in the pharmaceutical and medical device sectors.
Here are five notes:
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Denmark is a major exporter of healthcare products to the U.S., with roughly half of the European country's recent exports consisting of essential medications such as insulin, vaccines and antibiotics.
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Denmark is home to drugmaker Novo Nordisk, the maker of highly sought GLP-1 drugs Ozempic and Wegovy, which are approved by the FDA to treat diabetes and weight loss, respectively. These drugs, which have seen skyrocketing demand in the U.S., are produced in Denmark and the U.S. for domestic distribution. As a result, tariffs on Denmark could lead to higher prices for these medications. A Novo Nordisk spokesperson told theTimes in a statement that they are following the situation closely but would not comment on speculation.
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Gilberto Garcia-Vásquez, chief economist at Datawheel, told the news outlet that Denmark's export of immunological products, including GLP-1 medications, has been "growing exponentially." Any tariffs imposed on the drugs could disrupt access and potentially drive up costs for U.S. consumers, according to the report.
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Beyond pharmaceuticals, Denmark is a key supplier of hearing aids and medical devices to the U.S. The impact of tariffs could be felt across these sectors as well, leading to supply chain disruptions and potential price increases.
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Healthcare leaders expressed concern about the broader economic effects if Denmark is targeted; it could prompt retaliatory tariffs from the European Union, further complicating the global supply chain. Jacob Funk Kirkegaard, PhD, a senior fellow at the Peterson Institute for International Economics in Brussels, told the Times: "This idea that he can pressure Denmark as a single member state of the E.U., to offer policy concessions by threatening tariffs, is going to invite retaliation from all of the E.U."