Trump Pressures Drugmakers on Global Price Parity

President Donald Trump publicly sent ultimatum letters to the CEOs of 17 major pharmaceutical companies demanding they lower U.S. prescription drug prices to 'most favored nation' (MFN) levels by September 29 or face government action. The MFN model calls for matching the lowest international prices on Medicaid and new drugs, with Trump criticizing previous industry proposals as inadequate. The administration threatened aggressive measures, including possible tariffs on imported medicines, though the legal authority to enforce such actions is unclear. Officials also suggested supporting higher drug prices abroad if the extra revenue is used to reduce U.S. prices. Industry analysts and policy experts remain skeptical of the plan's effectiveness without legislative support, while critics argue that voluntary compliance is insufficient. The initiative has already caused pharmaceutical stocks to drop and renewed debate over U.S. drug pricing, as Americans pay up to three times more for medications than people in other developed nations.