Novo Nordisk, the Danish pharmaceutical firm behind Ozempic, has responded to U.S. President-elect Donald Trump’s risk to impose tariffs on Demark over the Greenland territorial dispute.
Newsweek has contacted the Danish Embassy in Washington, D.C., and the Trump transition workforce by way of electronic mail for touch upon the proposed tariffs.
Why It Issues
Tariffs on Denmark would possible have an effect on Individuals’ entry to most Danish exports. Whereas Trump didn’t specify the extent of tariffs he deliberate on imposing, vital levies might lead to client costs skyrocketing for merchandise akin to Ozempic.
In response to an evaluation from the Peterson Heart on Healthcare and KFF, Individuals are already paying way more for the diabetes and weight reduction treatment than different international locations, and Novo’s most up-to-date monetary assertion confirmed that the lion’s share of its revenues got here from the U.S. market.
Steve Christo/Corbis by way of Getty Photos/AP Picture/Evan Vucci)
What To Know
Throughout a information convention at Mar-a-Lago on Tuesday, Trump stated he would “tariff Denmark at a really excessive stage” ought to the nation refuse his supply to buy Greenland, an autonomous island within the Arctic Circle that’s a part of the Danish realm.
A spokesperson for Novo instructed Newsweek that the corporate would “comply with the state of affairs very carefully” however declined to touch upon the hypothetical impact of tariffs on its operations or the value of its merchandise for U.S. customers.
Apart from Ozempic, the recognition of which has ballooned over the previous few years on the again of celeb endorsements, Novo manufactures the weight-loss injectable Wegovy and serves as one of many prime insulin exporters to the U.S.
In a current monetary assertion, the corporate credited a major uptick in gross sales exercise within the first three quarters of 2024 to the recognition of its diabetes- and obesity-focused line.
The American market has turn out to be so vital for the Danish pharmaceutical big that in September, Vermont Senator Bernie Sanders referred to the U.S. as “Novo Nordisk’s money cow.”
Along with Denmark, the Bagsværd-based pharmaceutical has manufacturing operations within the U.S., France and Eire, which might mute the impact of Trump’s proposed tariffs on the nation.
Except for medicaments, tariff-related worth will increase might hit merchandise akin to Lego and listening to aids, The New York Occasions reported, citing economists on the Observatory of Financial Complexity.
What Individuals Are Saying
A spokesperson for Novo Nordisk instructed Newsweek on Thursday: “We’ll comply with the state of affairs carefully; nevertheless, we is not going to touch upon hypotheticals and speculations. The geopolitical panorama in immediately’s world may be very dynamic, and we stay centered on our dedication to ship lifesaving medicines to the sufferers we serve.”
Eswar Prasad, a senior professor of commerce coverage at Cornell College, instructed Barron’s on Tuesday: “In precept, such tariffs can be related just for merchandise imported instantly from Denmark.”
President-elect Donald Trump wrote on Fact Social on December 22: “For functions of Nationwide Safety and Freedom all through the World, the USA of America feels that the possession and management of Greenland is an absolute necessity.”
Greenland Prime Minister Múte Egede wrote on Fb on December 23: “Greenland is ours. We aren’t on the market and can by no means be on the market.”
What Occurs Subsequent
Trump is about to return to the White Home on January 20 and maintains that the U.S. gaining possession of Greenland is integral for “nationwide safety functions.” He has refused to rule out army intervention to take action.
Do you’ve got a narrative we ought to be protecting? Do you’ve got any questions on this text? Contact [email protected].
