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American Focus > Blog > Economy > Donald Trump’s drug plan risks higher medicine prices in Europe
Economy

Donald Trump’s drug plan risks higher medicine prices in Europe

Last updated: June 22, 2025 9:25 pm
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Donald Trump’s drug plan risks higher medicine prices in Europe
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The push by Donald Trump for the global medicines industry to lower drug prices in the US is causing ripple effects in European healthcare systems. The pharmaceutical industry is facing pressure from the Trump administration to voluntarily reduce prices for American patients, which could lead to price increases in Europe to offset the lower costs in the US.

Trump’s most favoured nation drugs policy, outlined in an executive order in May, is looming over negotiations about changes to UK pricing agreements. Drugmakers are using this policy to argue for higher prices from the UK’s National Health Service, fearing that settling for less could prompt the US to demand price cuts to match UK levels.

European countries, facing stretched budgets and long-term contracts with pharmaceutical companies, are likely to resist significant price hikes. This resistance could result in drugmakers withholding new treatments from markets where prices are lower.

Trump has criticized Europe for benefiting from lower drug prices compared to the US, leading to his push for the most favoured nation policy. This policy aims to ensure that US patients are offered the lowest price charged in countries with at least 60% of US GDP per capita.

Experts warn that European healthcare systems may face the dilemma of paying more for drugs or losing access to new treatments as a result of Trump’s pricing pressure. The UK, for example, may struggle to maintain its current drug valuation methodology in the face of potential price increases demanded by the US.

Pharmaceutical companies may need to adjust their business models to accommodate the demands of the Trump administration. Legal challenges may also arise if voluntary price reductions fail to meet expectations.

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While the pharmaceutical industry has long advocated for higher drug prices in Europe, the Trump administration’s approach may be too ambitious. Expecting European countries to double drug prices while reducing healthcare costs in the US is seen as unrealistic by industry experts.

European countries like the UK, Denmark, and Germany have systems in place to manage drug costs and assess the value of medications. The US’s attempt to replicate a system of reference pricing across EU member states may face challenges due to the complexity of each country’s healthcare system.

In conclusion, the push for lower drug prices in the US by the Trump administration is causing uncertainty in the global pharmaceutical industry. European healthcare systems may need to navigate carefully to balance access to new treatments with the financial pressures of potential price increases.

TAGGED:DonaldDrugEuropehigherMedicineplanPricesRisksTrumps
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