Trump threatens to deploy all available resources in pricing dispute with British pharmaceutical companies
In a bold move, US President Donald Trump has demanded seventeen pharmaceutical companies to cut their prices within 60 days. This demand, if met, could potentially lead to significant changes in the pricing of drugs in various countries, including the UK [1].
Trump's aim is to reduce drug prices in the US, which he argues are currently the highest, subsidizing drug research and foreign healthcare systems [1]. To achieve this, he demands companies commit to not offering better prices to developed countries like the UK than in the US. If they refuse, he has threatened to impose tariffs [1].
This could have damaging consequences for the National Health Service (NHS) in the UK, potentially reducing its leverage with suppliers due to its size [2]. The move by the US President could force the NHS, one of the largest global buyers of pharmaceuticals, to face significant drug price hikes [1][3].
The White House has set a 60-day deadline for these companies to comply and indicated readiness to use trade policy as leverage. UK political groups are urging the UK government to establish emergency plans to protect the NHS from the potential financial impact of these demands [4].
Two UK drug firms, AstraZeneca and GSK, are involved in the pharmaceutical row and saw their share price drop due to Trump's actions [5]. Trump has waged war with these firms, seeking "binding commitments" to match the lower prices offered to developing countries [1].
The tariffs signed by Trump affect 68 countries, including the European Union and Canada [6]. The tariffs on Canada were increased from 25% to up to 35%, causing £16 billion to be wiped off shares in the sector across Europe due to fears of higher prices in the rest of the world funding US reductions [7].
Canada's Prime Minister Mark Carney stated that his country is making historic investments in border security to arrest drug traffickers and end migrant smuggling [8]. Switzerland will continue negotiating with the US after the tariff increase [9].
Trump has demanded that UK drug companies lower prices for Americans by charging higher prices abroad. He has pressured these companies to apply their "most favored nation" rates to Medicaid, the health system for low-income Americans [10].
The US President stated that a collaborative effort towards achieving global pricing parity would be the most effective path for companies, the government, and American patients [1]. However, experts appear wary that Trump has the authority to reduce drug prices [2].
Sources:
- BBC News
- The Guardian
- The Telegraph
- The Independent
- Reuters
- CNBC
- Financial Times
- CTV News
- Swissinfo
- The Hill
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