Danish pharmaceutical giant Novo Nordisk has been left grappling with major uncertainty following U.S. President Donald Trump’s surprise announcement that all patented medicines imported into the United States will face a 100% tariff starting October 1, unless companies establish production facilities on American soil.
The move comes just weeks after the European Union and the United States reached a trade agreement in July, under which EU goods faced an initial 15% tariff. In August, pharmaceuticals were explicitly included in that framework, also subject to the 15% levy. Trump’s sudden escalation raises questions about how the new measure fits within the legally binding agreement, and whether it represents a unilateral break from the summer negotiations.
Novo Nordisk’s Executive Vice President, Mike Doustdar, stressed in a written statement that the company is still trying to understand how the president’s new position will be implemented. He noted that Novo Nordisk looks forward to engaging with U.S. authorities to secure a policy that not only supports market access but also maintains incentives for pharmaceutical innovation.
The U.S. is Novo Nordisk’s single largest market, generating a significant share of the company’s global profits from its world-leading diabetes and obesity treatments. An effective 100% tariff would severely undermine the competitiveness of European-made medicines, potentially pressuring Nordic pharmaceutical firms to reconsider production strategies.
Industry analysts warn that the move could trigger an escalating transatlantic trade dispute, while also compelling other EU drugmakers to weigh higher U.S. investment against rising political risks. For Denmark, where pharmaceuticals represent one of the country’s most important export sectors, uncertainty over U.S. trade policy poses a direct challenge to one of its largest growth drivers.