- Trump threatened pharmaceutical companies with tariffs if they don’t shift manufacturing to the U.S.
- He declined to support rolling back Biden-era drug pricing negotiations.
- Medicare is moving forward with price negotiations, including for weight-loss drugs like Ozempic and Wegovy.
Former President Donald Trump warned major pharmaceutical executives in a private meeting that tariffs are imminent unless they relocate manufacturing to the U.S. Despite the industry’s hopes for his support, Trump did not commit to reversing Biden-era drug pricing policies, which allow Medicare to negotiate prices.
Additionally, Trump criticized the high cost of prescription drugs in the U.S. compared to other nations and emphasized that his administration, along with Health Secretary Robert F. Kennedy Jr. and Medicare nominee Mehmet Oz, aims to lower prices.
Trump Pressures Pharma: Bring Drug Manufacturing to the U.S.
Trump’s tough stance on drug pricing echoes his first-term criticisms, where he accused pharmaceutical companies of overcharging Americans. His warning about tariffs aligns with his broader trade policies, which prioritize domestic manufacturing and economic nationalism. However, this approach may lead to higher production costs that could ultimately affect drug prices.
The industry had hoped for a rollback of Biden’s drug negotiation program, arguing that the current system creates imbalances in drug development incentives. Trump, however, showed little interest in making changes, fearing it could complicate Republican tax reform efforts. His refusal to commit to their demands signals a rocky relationship between his administration and big pharma.
Trump’s remarks about international drug pricing disparities suggest he may push for policies forcing companies to align U.S. prices more closely with global markets. This could involve regulatory changes or additional measures targeting middlemen in the supply chain, another industry pain point.
Despite pharma’s initial optimism, the presence of Robert F. Kennedy Jr., known for controversial medical views, and Mehmet Oz, a figure with a history of medical misinformation allegations, adds uncertainty to Trump’s healthcare policy direction. The industry now faces an unpredictable landscape with potential trade restrictions and continued price negotiations.
Trump’s latest stance signals a continuation of his past conflicts with the pharmaceutical industry, with tariffs and pricing reforms on the horizon. The coming months will reveal how these policies unfold and whether they ultimately benefit American consumers.
“The pharmaceutical industry is not about healing. It’s about making money.” – Robert F. Kennedy Jr.
