Sayonara High Drug Prices: Trump Targets Europe's Pharmaceutical Elephant
U.S. President Trump aims for reduced medication costs domestically, escalating pressure on the European Union.
Holla, Tweet, Chirp, Email, Print, Copy Link
President Donald Trump's quest to slash skyrocketing drug prices has zeroed in on Europe, and it ain't playing nice with our old pals across the pond. "It's high time we stop carrying the weight of Europe's healthcare costs," Trump barked, autographing an executive order to cut prescription drug costs webfoot.
Trump's focus isn't on the meds' manufacturers, but on the overseas governments. He's been shouting from the rooftops that American patients got scammed into funding foreign healthcare systems, including Deutschland's socialist system, as he so eloquently phrased it. And the European Union, oh how he despises it! Accusing the EU of being craftier than an old-time Chinese negotiator, Trump threatened, "If they want to pull a fast one on us, no more Mercedes on our roads."
Now, time will tell if Trump's bluff will hold water. His plans have faced resistance both politically and legally. But this isn't the first time Trump tried to curb drug prices—last time, he got smacked down like a concrete block.
TV: ntv.de, dpa
Here's the skinny on Trump's game plan, courtesy of our intel:
- Executive Order and Negotiations: Trump signed an executive order, giving the green light to the Department of Health and Human Services (HHS) to negotiate with pharmaceutical companies for lower drug prices. In mere days, the HHS must declare reduction targets. If negotiations with the drug companies hit a brick wall, the government may resort to implementing the "Most Favored Nation" policy, ensuring the U.S. doesn't get hosed on prices compared to other countries.[2]
- Threats and Pressure Tactics: Trump's whining about Europe's pricing tricks, claiming U.S. drug prices are inflated partly because Europe prices 'em cheap. This narrative allows him to put the screws to drug companies and European governments to adjust their pricing methods.[1][3]
- Pharmaceutical Industry Leverage: Drug companies are doing a moonwalk, pleading that Europe should shell out more cash for meds, arguing they don't get a fair shake. They bank on Trump's sentiment and the risk of shifting their research and manufacturing to the U.S. if Europe balks at hiking prices.[3]
In short, Trump's strategy includes leveraging diplomatic pressure and economic muscle to bend European drug pricing policies to his will and get a better deal with drug companies.
- The community policy under the executive order signed by President Trump allows the Department of Health and Human Services to negotiate with pharmaceutical companies for lower drug prices, employing the 'Most Favored Nation' policy if negotiations fail.
- In the health-and-wellness sector, President Trump has been vocal about Europe's pricing strategies in medicines, accusing them of artificially keeping prices low, thereby inflating drug costs in the United States.
- The politics of drug pricing is a complex web, with the pharmaceutical industry employing tactics such as threatening to shift research and manufacturing away from Europe if governments fail to increase prices, in response to Trump's pressuring them to adjust their pricing methods.
