By Adam Levine

Donald Trump's threat to impose a "very high level" of tariffs on Denmark seems more like a problem for the Scandinavian country than the U.S. But American consumers in certain sectors would pay a price as well.

Denmark is a country of six million people, about the population of Wisconsin, so U.S. trade with it is relatively minor. At $9.8 billion in the 12 months through November, Denmark's exports to the U.S. ranked 37th, between Costa Rica and Peru, according to the U.S. Census Bureau.

It represents 0.3% of all U.S. goods imports, a total equivalent to 1.9% of those from Mexico, the largest exporter to the U.S.

Yet while the list of major U.S. imports from Denmark is fairly thin, tariffs could affect prices in some areas.

Only 1.4% of U.S. pharmaceutical imports are from Denmark, but some of these are very important to Americans. Novo Nordisk, an important producer of GLP-1 drugs for obesity and diabetes, is a Danish company.

It makes other medications for diabetics as well, including insulin. About 74% of U.S. insulin imports are from Denmark. According to the Centers for Disease Control and Prevention, 28 million American adults have diabetes, and another 98 million are prediabetic.

Pharmaceutical imports from Denmark dropped precipitously in 2024. The total for the first 11 months was down 58% from the same period in 2022.

Another major U.S. import from Denmark is hearing aids, at about 28% of the total imported, from Oticon, GN Group, and WS Audiology. According to the National Institute on Deafness and Other Communication Disorders, 5% of Americans aged 45-54 have disabling hearing loss. That rises to 10% for ages 55-64, 22% for 65-74, and 55% for those 75 and over.

Wind turbine blades and hubs are also exported from Denmark to the U.S., accounting for 11% of all U.S. imports of these products. According to Berkeley National Laboratory, 366 gigawatts of wind power, about 14% of total power projects, is awaiting regulatory approval to begin construction.

Denmark may decide to impose retaliatory tariffs on the US. But because of the size of the market, U.S. exports of goods to Denmark are minor, at $6 billion.

That is 0.3% of total exports, and is equivalent to 1.7% of exports to Canada, the largest U.S. export partner. The three largest goods exports, comprising more than half of U.S. exports to Denmark, are petroleum products, aircraft, and organic chemicals.

Write to Adam Levine at adam.levine@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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January 08, 2025 14:52 ET (19:52 GMT)

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