President-elect Donald J. Trump has announced potential tariffs on various countries, citing multiple reasons for this economic strategy. Most recently, he expressed intentions to impose high tariffs on Denmark if it does not consent to the United States acquiring Greenland, an autonomous territory within Denmark.
Trump emphasized the importance of Greenland for national security, stating, “They should give it up, because we need it for national security.” Despite Denmark's relatively small population and its limited trading relationship with the United States, the country is a key ally and NATO member. In 2023, Denmark exported over $11 billion in goods to the U.S., while imports from the U.S. exceeded $5 billion.
Denmark’s exports to the U.S. include significant quantities of pharmaceuticals, such as packaged medicines, insulin, vaccines, and antibiotics, which constitute nearly half of its recent exports. Novo Nordisk, a prominent pharmaceutical company in Denmark, plays a vital role in the local economy and is known for its production of widely used weight-loss medications.
Novo Nordisk is increasing its production in the U.S. to meet demand but has not disclosed the extent of its exports. A representative from the company stated they are monitoring the situation but would not comment on speculative scenarios.
Economic analysts note that Denmark's exports of immunological products have been growing significantly, and the country is also a major supplier of hearing aids to the U.S. Other products exported to the United States include medical instruments, fish, pork, and baked goods.
Additionally, Denmark is home to Lego Group, the largest toy manufacturer globally. However, much of Lego's U.S. market supply comes from its factories in Mexico and Virginia, along with facilities in other countries. The company did not respond to inquiries regarding the potential impact of tariffs.
Trump's comments about Greenland and tariffs were made during a news conference where he also discussed other controversial ideas, which drew criticism from foreign leaders. Greenland’s Prime Minister asserted that the future of Greenland is a matter for its residents, while a European Commission spokesperson labeled Trump’s comments as "hypothetical."
Analysts warn that should Trump enact tariffs on Denmark, it may trigger a broader European Union response. The possibility of retaliation underscores the complexity of international trade negotiations and the potential implications of unilateral tariff threats.
During his campaign, Trump reiterated threats of substantial tariffs on other nations, including Mexico and Canada, while also expressing dissatisfaction with the U.S. trade deficit with Canada and the European Union.