Trump Administration's Bold Move to Equalize Drug Prices Hits International Stage

The Trump administration is in talks with pharmaceutical companies to equalize drug prices globally, aiming to lower costs domestically. The U.S. pays significantly more for medications compared to other developed nations. President Trump is pressing for international price hikes to relieve American consumers.

Under 'most favored nation' pricing, U.S. drug costs would match the lowest rates available to other affluent countries. During confidential meetings, officials suggested supporting drugmakers' international negotiations, provided this pricing model is adopted. This strategy, however, poses a challenge as it might hinder pharmaceutical innovation due to reduced research funding.

European governments, unlike the U.S., negotiate drug prices directly, often securing lower rates. Drugmakers argue that high U.S. prices fund their R&D worldwide. Despite threats of tariffs and manufacturing shifts, raising European drug prices remains a top priority, highlighted by Trump's letters urging major pharmaceutical CEOs to take action.

(With inputs from agencies.)