US President Donald Trump announced via social media that the much-anticipated trade agreement with Japan had finally been sealed. While he positively declared having completed “a massive Deal” with the country, he dealt European countries a significant blow. Employing his new trade tactic, the POTUS issued vehement warnings for those pharmaceutical companies and countries that fail to comply with the nation policy of favourable drug prices for Americans. 

Trump on potential European car sale ban in the US

On Tuesday night, went as far as suggesting that his plan succeeds with flying colours, Americans would see a 1,000% drop in drug prices. As he went on to lay out how his administration “was working very hard” for everything to fall in place, he strictly reminded that those who don’t follow through will be hit with nightmares. Without mincing his words, Trump declared, “We will use import restrictions to force foreign suppliers to cut drug prices.” 

ALSO READ

“We’re working very hard right now to get the other countries to lift up their prices a little bit, and to get the drug companies to put it to them. And if they don’t, the drug companies will have a lot of problems,” he said. 

“And if the countries don’t, and as an example, if it’s Europe, I’ll say, ‘That’s okay. You no longer are allowed to sell cars in America. You no longer are allowed to have Mercedes, BMW, Volkswagen or any of the other many cars.’ And they will say, ‘Oh, I love the idea of lower drug prices for America,’” he sarcastically sounded the alarm at a White House event. 

He noted that these countries would ultimately not be allowed to sell cars in the United States. “‘You no longer are allowed to have Mercedes, BMW, Volkswagen or any of the other many cards.’ And they will say, ‘Oh, I love the idea of lower drug prices for America.’”

Pharma companies, automakers collide amid tariff chaos

In the same breath as playing the trade card, Trump noted that he’s seen so many people just go to Europe to buy cheap medicines. Given the bulk purchases, certain people have even gotten arrested in the past as authorities confused them with drug addicts. He went on to say, “They just buy months of supply because it’s sometimes one tenth, one eighth, one fifth, one half. It’s a tremendous difference.”

ALSO READ

Meanwhile, the net income of General Motors, a major US automaker, dropped by 35% in the second quarter even though it had strong sales in its pocket, as per Fox Business. The company’s net income came down from $2.9 billion in the second quarter of 2024 to $1.8 billion in 2025’s second quarter. GM is now “positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape,” as per Chief Executive Mary Barra’s letter to shareholders.