| Donald Trump regularly lobs economic threats at major US trading partners. But he took aim Tuesday at one of the smaller ones, warning that he'd "tariff Denmark at a very high level" if the country with an economy the size of Missouri's resists his offer to buy Greenland. While Denmark ranks just 41st on the latest list of top US trading partners — with $14.6 billion in goods trade from January through November last year — higher prices on Danish products could be felt acutely by the millions of Americans who use hearing aids or take medication for diabetes or obesity. Read More: Trump's Relentless Greenland Fixation Puts Denmark in Spotlight More than 75% of US insulin imports by value came from Denmark last year through November, according to Michigan State University supply chain professor Jason Miller. Between 25% and 30% of imports of hearing aids — both completed as well as parts and accessories for the devices — came from Denmark. Tariffs on Danish products could also threaten various pharmaceuticals and medicines, including blockbuster GLP-1 weight-loss and diabetes drugs. Of course, it's unclear what Trump means by "very high," and how such import taxes would impact Novo Nordisk — the maker of Ozempic and Wegovy — because the Danish pharmaceutical giant has manufacturing operations in the US, Denmark and elsewhere. Read More: Ozempic Maker Novo Nordisk Has Denmark's Economy Hooked
Even so, "I don't think the American people are in a mood to incur higher costs for pharmaceuticals and hearing aids," Miller said in a LinkedIn post. "Given how much of an issue that inflation was during the last election, anything that would increase inflation doesn't seem like a wise policy at the moment." US tariffs aimed across the Atlantic would also incur the collective wrath of the 27-nation European Union. The EU must be ready to defend itself against protectionist trade measures by other countries, including any new steps taken by Trump, the bloc's industry chief said in an interview with Bloomberg TV. Video: EU Can't Risk Complacency Ahead of Trump, Sejourne Says During the wide-ranging press conference at his Mar-a-Lago estate, the US president-elect said the self-ruling Arctic territory that's part of Denmark is important to American security. He doubled down on his insistence that the US must reclaim the Panama Canal. Trade Pressure When a reporter pressed him to rule out economic or military coercion to gain control of Greenland and the canal, Trump said, "I'm not gonna commit to that. No. It might be that you'll have to do something." Jennifer Welch, chief geoeconomics analyst for Bloomberg Economics, said Trump is much more likely to use tools like tariffs to achieve his goals than military force, which would involve significant risk. "Trump is more likely to dial up the economic and political pressure to secure concessions from Canada on trade imbalances, obtain access from Denmark to resources from Denmark (Denmark and Greenland) and limitations on the influence of US competitors (Panama)," Welch wrote in a research note on the Bloomberg Terminal. Trump ruled out using the military to pressure Canada — the US's No. 2 trading partner — but said he'd use "economic force" to make the country the US's 51st state. Read More: Canada's Trade Surplus With US Widens Ahead of Trump's Return He also said the US doesn't need "anything" that Canada produces and that he'd rather make cars in Detroit instead of relying on the highly integrated continental auto supply chain, and not buy Canadian lumber or dairy. He also promised to rename the Gulf of Mexico the Gulf of America, and said he'd put "very serious tariffs" on Mexico and Canada as a penalty for the illegal drugs he says are coming across the borders at record numbers. "We want to get along with everybody," Trump said, "but it takes two to tango." —Laura Curtis in Los Angeles Click here for more of Bloomberg.com's most-read stories about trade, supply chains and shipping. | 
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