Trump Pushes Drugmakers to Raise European Prices as U.S. Seeks Cheaper Medicine at Home

Behind the scenes in Washington, the Trump administration has been quietly pushing drugmakers to hike medicine prices overseas in a bid to bring down costs at home. Officials have held several rounds of talks with pharmaceutical companies, exploring ways to shift more of the pricing burdens onto Europe and other markets.

Sources familiar with the discussions say the White House is backing talks with foreign governments that would see the U.S. adopt "most favored nation" pricing. That means American drug prices would align with the lower costs paid by other developed countries - a move designed to clamp down on what President Donald Trump calls American consumers getting "ripped off."

What makes this angle interesting is the administration isn't just leaning on companies to lower prices domestically; it's actively encouraging them to push for higher medicine costs abroad. A couple of industry insiders described a series of meetings over recent months where U.S. officials asked pharma execs for proposals to increase drug prices in Europe, the UK, and beyond, without slashing research and development budgets. R&D cuts have always been the industry's go-to argument against pricing reforms, so this dance is as much about reputations as it is dollars and cents.

European governments usually negotiate drug prices directly, often squeezing prices down because they're footing the bill for national healthcare. This contrasts sharply with the free-market-driven U.S. system - one reason why American prices tend to be much higher, sometimes triple what Europeans pay.

A senior exec at a European pharma company, speaking under anonymity, acknowledged that elevating European drug prices has become the Trump administration's top priority in ongoing trade talks, even outpacing calls to bring more manufacturing stateside. It seems the pressure is cascading from Pennsylvania Avenue straight into boardrooms across the pharma sector.

Meanwhile, Europe's response is cautious. The European Union has flagged that if U.S. tariffs on pharmaceuticals are imposed, they won't go above a 15% ceiling-but beyond that, governments seem wary of reversing their tight grip on pricing. Politically, pushing prices upward in countries accustomed to controlling medical costs is a tough sell.

Looking at some of the key players, AstraZeneca (NASDAQ: AZN), Bayer (OTC: BAYRY), and Novo Nordisk (NYSE: NVO) were among over 30 CEOs who signed a letter earlier this year calling on the EU to rethink how they set drug prices. They argue the current European system stifles innovation - a familiar claim.

But not everyone buys it. Some analysts point out that pharma companies' U.S. revenues more than cover their global R&D expenses, suggesting that American consumers end up overpaying not just to fund innovation but to subsidize lower prices elsewhere. It raises the question: can drug prices in the U.S. drop without forcing hikes overseas? The Trump administration's answer appears to be no.

The White House's strategy also involves trade negotiations with the UK and EU, hinting at potential tariff breaks or demands for increased healthcare spending on medicines in exchange for smoother market access. The UK government didn't comment directly but indicated ongoing talks with U.S. counterparts and pharma players.

The picture emerging here is a high-stakes game of price shuffling at a global scale. While the U.S. hopes to curb the steep costs at home, the lever it's pulling involves international trade dynamics, corporate lobbying, and the delicate balance between affordable healthcare and pharmaceutical profits.

Whether this approach will succeed - or simply rearrange who pays what and where - is something to watch closely.