Novo Nordisk (NVO), the maker of the popular diabetes and weight-loss drugs Ozempic and Wegovy, expects at least some short-term impacts from President Donald Trump’s proposed tariffs.

“We still have products moving across borders like most global companies,” Novo Nordisk CEO Lars Fruergaard Jorgensen told Bloomberg on Thursday. “Of course there’ll be some short-term impact as we mitigate the impact of tariffs.”

The Denmark-based company’s stock fell nearly 3% Thursday morning following his comments.

Jorgensen noted that even when drugmakers manufacture in the U.S., they typically rely on ingredients sourced abroad. He emphasized that generic drugs would be hit the hardest, potentially causing shortages and driving up prices in general.

Since taking office, Trump has proposed several tariffs. He announced last month plans to impose tariffs “in the neighborhood of 25%” on imported vehicles, semiconductors, and pharmaceuticals starting in April.

Meanwhile, 25% tariffs on most imports from Mexico and Canada took effect on Tuesday, and duties on Chinese goods were raised by 10%.

Trump also suggested that tariffs on imported goods from the European Union are “coming very soon.” And he recently signed a memorandum that directs his advisers to draft new “fair and reciprocal” trade tariffs on all major U.S. trading partners.

Jorgensen’s comments also come as Trump has pushed pharma companies to bring more production to the U.S. as part of his broader effort to boost domestic manufacturing. In February, Trump met with top industry executives, including Eli Lilly (LLY) CEO David Ricks. A week later, Eli Lilly announced plans to invest $27 billion in four new U.S. manufacturing facilities.

Pfizer (PFE) CEO Albert Bourla also said this week that the drugmaker could move some of its overseas manufacturing to its U.S. plants, if necessary.

Novo Nordisk announced last year that it is investing $4.1 billion to build a new facility in Clayton, North Carolina.

For the latest news, Facebook, Twitter and Instagram.