Archive · 29 Jan 2026
Pharmaceuticals Become Geopolitical Weapons in Trade
The US and other countries are making deals about medicines to avoid high taxes called tariffs.
The US wants to make sure medicines are made in America and are cheaper for Americans.
They are also using these medicine deals to try to get Greenland, which is part of Denmark.
Big medicine companies like Novo Nordisk are very important because they make a lot of medicines that people need.
The US and other countries are working together to make sure they have enough medicines and to make new medicines using computers.
This is important because if one country has too much control over medicines, it can cause problems for everyone.
The US negotiated trade deals with several countries to minimize tariffs on pharmaceuticals, including a zero-tariff deal with the UK.
The US threatened to impose tariffs on pharmaceuticals, citing national security concerns, with a Section 232 investigation initiated in April 2025.
President Trump threatened to impose additional tariffs on European nations over Greenland's status, casting uncertainty on economic interdependence.
Denmark's Novo Nordisk is a key player in the pharmaceutical sector, with significant reliance on the US market, making it vulnerable to tariffs.
The India-EU Free Trade Agreement highlights the importance of supply chain resilience and innovation partnerships in the pharmaceutical sector.
- Who
- US President Donald Trump, pharmaceutical companies (MSD, AstraZeneca, Eli Lilly, Novo Nordisk), UK, Denmark, India, EU
- What
- Trade deals and tariff threats on pharmaceuticals, potential geopolitical leverage using pharmaceuticals
- When
- Trade deals negotiated recently, Section 232 investigation initiated in April 2025, outcome expected in March 2026
- Where
- Global, with focus on US, UK, Denmark, India, EU
- Why
- To reduce drug costs for Americans, ensure drug manufacturing in the US, and gain geopolitical leverage
- Countries Involved in Deals
- South Korea, Switzerland, Japan, UK, US, Denmark, India, EU
- Key Pharmaceutical Companies
- MSD, AstraZeneca, Eli Lilly, Novo Nordisk
- Tariff Threats
- Up to 250% initially, later 100% on patented and branded drugs
- US-UK Pharmaceutical Deal
- Zero-tariff deal with NHS paying 25% more for medicines
- Section 232 Investigation
- Initiated in April 2025, outcome expected in March 2026
- Novo Nordisk's Market Value
- US$570 billion (April 2024)
- Novo Nordisk's Sales in North America
- 60%
- Critical Medicines Act
- Supported by European Parliament to insulate EU's medicine supply
