Trump Plans Lower U.S. Drug Prices by Raising Prices in Other Countries

President Donald Trump is intensifying efforts to lower drug prices for Americans by pushing pharmaceutical companies to raise prices in other countries, aiming to offset the impact on their profits. Commerce Secretary Howard Lutnick stated that drug manufacturers must sell at higher prices abroad if they want to maintain lower prices in the U.S., targeting the so-called 'Most Favored Nation' pricing strategy, which seeks parity between U.S. drug prices and those in Europe and other peer nations. Although Trump has revived this approach through executive orders and negotiations, legal challenges and questions about his authority to enforce such measures persist. Meanwhile, other countries like the UK are facing their own pharmaceutical pricing disputes, leading to decreased foreign investment due to government-imposed revenue return policies. Additionally, legislative changes in the U.S., such as the 'One Big Beautiful Bill,' have delayed Medicare's ability to negotiate prices for orphan drugs, potentially undermining long-term cost control efforts. These developments highlight ongoing global tensions and policy complexities in balancing drug affordability with industry sustainability.