Energy News Beat
The White House is threatening a close ally with a trade war or worse—but Copenhagen has leverage that could inflict instant pain on the U.S. economy.
During his first term as the U.S. president, Donald Trump occasionally floated the idea of buying Greenland, but few took it seriously. Now Trump is repeating the calls, backed with threats against Denmark, and nobody is chuckling anymore.
The Nordic nation is facing the prospect of a close ally taking Danish territory by force. But despite only having a small army and navy, Denmark has no shortage of economic leverage with which it can try to reason with—or, if necessary, pressure—the U.S. president.
Indeed, there are several Danish multinational companies without whose products and services Americans would feel immediate pain.
Over the weekend, the Financial Times disclosed details about a Jan. 15 call between Trump and Denmark’s prime minister, Mette Frederiksen.
According to the Financial Times, it was a fiery 45-minute conversation in which Trump—who hadn’t yet been inaugurated—was “aggressive and confrontational.” The crux was Fredriksen’s refusal to sell the Arctic island of Greenland to the United States.
Denmark is a committed and well-liked member of NATO, but it can’t change the fact that it’s a small country with a population just shy of 6 million and armed forces of some 20,000 active personnel.
If Trump is serious about acquiring Greenland, Denmark would not be able to mount much of a fight against its NATO ally even if it wanted to—though Washington’s meager aging fleet of icebreakers would make any naval operations in the polar north a challenge. (The will of the Greenlanders appears to be a secondary consideration in Washington.)
But Denmark is not powerless in the matter. On the contrary, it has several trump cards—so to speak—up its sleeve. For starters, the Scandinavian country is home to Maersk, the world’s second-largest container-shipping company by cargo capacity. Most of the world’s nonliquid cargo is transported in containers, and in 2023, the Danish shipping line transported some 24 million worth of them on its 672 ships. Maersk is so large that the firm’s ships account for an estimated 14.3 percent of the global container ship fleet.
In the United States, Maersk delivers goods to and from Baltimore, Charleston, Houston, Jacksonville, Long Beach, Los Angeles, Miami, Mobile, New Orleans, New York, Newark, Norfolk, North Charleston, Oakland, Philadelphia, Port Everglades, Port Hueneme, Savannah, Seattle, Tacoma, Tampa, and Wilmington.
On Jan. 1, for example, the MSC Tomoko arrived in Houston, then traveled to New Orleans and from there to Freeport in the Bahamas. The following day, the MSC Ensenada arrived in Houston, traveling on from there with cargo bound for Colombia and Brazil, according to Maersk’s website, where anyone can track its ships’ calls.
And right now, shipping lines are at—or near—full capacity. If any shipping line were to suddenly stop shipping to or from the United States, other carriers would only be able to fill a tiny share of that gap. If the Danish government banned Maersk from sailing to U.S. ports, then American businesses and consumers would instantaneously feel the pain.
And speaking of pain, millions of Americans would feel it in their waistlines if Frederiksen banned health care company Novo Nordisk from exporting to the United States.
The Danish pharma giant is, after all, the maker of semaglutide—the active ingredient in Ozempic and Wegovy, the weight-loss drugs that have revolutionized anti-obesity and diabetes treatment in the United States. The company produces semaglutide in Denmark and, despite many attempts by copycats and others, genuine Ozempic can’t yet be created from scratch in the United States.
Between 2021 and 2023, the number of Ozempic prescriptions in the United States jumped by nearly 400 percent, an academic study shows. The total number of prescriptions for drugs containing semaglutide reached 2.6 million by December 2023. In May 2023, a survey by Barclays Research estimated that more than half a million Americans were taking Wegovy.
So stratospheric has Ozempic’s rise been in the United States that in 2023, Germany warned that German supplies of the drug intended for patients with diabetes—the disease that the drug was initially developed to treat—were being shipped to weight-loss customers in the United States.
Like Maersk, Novo Nordisk makes large sums of money in America. The company’s shares surged by more than 7 percent last week on news of positive trials for its new obesity drug amycretin. The demand for Ozempic is so strong that Novo Nordisk has invested $4.1 billion in a facility in North Carolina that will make the drug’s key ingredient.
But if the Danish government were to conclude that the country’s security is imperiled by Trump’s threats, it could order Novo Nordisk to cease doing business in the United States. Many Americans would immediately notice the company’s absence.
If Denmark decided to hit back, U.S. consumers might suddenly also notice the absence of luxury Danish furniture and their kids might mourn the loss of the latest Legos. Today, Lego sets are made in Mexico (and Denmark, Hungary, the Czech Republic, and China), though the Danish toy company is building a plant in Virginia that will manufacture for the U.S. market. It is expected to employ more than 1,700 people.
Lego’s U.S. facility is, in fact, a form of friendshoring of the very kind Trump has been calling for. (“Come make your product in America, and we will give you among the lowest taxes of any nation on Earth,” he told global leaders at the World Economic Forum in Davos last week.) But he won’t be able to count on Danish investment if friends are treated like enemies.
A Danish blockade would be a dramatic step, and it’s one that Frederiksen would be reluctant to take. But she should remember that Trump’s trademark is issuing threats and speak back to him in a language that he understands.
Denmark’s prime minister should remind her American counterpart that her country has options that could damage the U.S. economy—and doing so might just level the playing field and lower the temperature, setting the stage for a more serious negotiation around U.S. interests in Greenland.
That’s what Chrystia Freeland—until recently Canada’s deputy prime minister, now running to succeed outgoing Prime Minister Justin Trudeau—did after several Trump overtures suggesting a U.S. takeover of her own country.
“The threats won’t work. We will not escalate, but we will not back down. If you hit us, we will hit back—and our blows will be precisely targeted,” she wrote in a Washington Post op-ed the day before Trump’s inauguration. “We are smaller than you, to be sure, but the stakes for us are immeasurably higher. Do not doubt our resolve.”
Ordinary Americans may not care much about Denmark, but the Scandinavian nation has given them much to enjoy in life. They would certainly hate to lose it.
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The post How Denmark Can Hit Back Against Trump on Greenland appeared first on Energy News Beat.
