The Trump administration might announce a new investigation into drug pricing practices among US trading partners, according to a report by the Financial Times. The probe would examine whether other countries are underpaying for prescription medicines, likely giving the US opportunity to impose trade actions under Section 301 of the Trade Act of 1974.
Earlier agreements with the EU and the UK limited tariffs on pharmaceutical imports to 15%.
Trump administration prepares drug pricing probe
While the White House has not commented on the matter so far, Trump has repeatedly criticised countries for paying less than the US for the same medicines, often citing examples like weight-loss drugs. “In London, you’d buy a certain drug for $130 … and in New York, you pay $1,300 for the same thing,” he said, referring to popular weight-loss pills.
Prescription drug prices in the United States are currently among the highest in the world. Research shows Americans often pay nearly three times as much as patients in other developed countries for the same medicines. For instance, a one-month supply of Ozempic, developed by Denmark’s Novo Nordisk, costs $936 in the US, $147 in Canada, and as little as $83 in France, according to the Kaiser Family Foundation.
Tariffs loom over global pharma trade
According to the Financial Times report, new investigation could give the White House the authority to impose tariffs on imported pharmaceutical products. While Trump has threatened hefty tariffs before, including a 100% levy on branded drugs unless companies set up US manufacturing plants, most of these measures have yet to be enforced.
Still, the looming threat of new tariffs has become a matter of concern among US trading partners. Ongoing trade conflicts, especially with China, have already unsettled global markets. Allies in Europe, North America, and Asia had seen tensions ease after Trump walked back some threatened duties, but hefty tariffs on countries like India, China and Brazil are still intact.
Apart from tariffs, Trump has been pressuring pharmaceutical companies to offer lower prices for Americans. Earlier this year, letters were sent to leaders of 17 major drug companies, asking them to match the prices their products fetch abroad.
Some companies have responded. Pfizer and AstraZeneca recently sealed agreements with the administration to reduce certain drug prices. Novo Nordisk and Eli Lilly have also held discussions with US officials.
The White House has not commented publicly on the latest probe, but sources say the investigation is intended to ensure that the US does not pay more than other countries for essential medicines.
