Trump strikes deal with US drugmakers to cut medicine costs for Americans
"Whatever the lowest number is - if it's in Germany, the UK, anywhere, 'we will match that price'," said Trump.
President Donald Trump has announced that the US will "match the price" of the lowest medicine costs globally in an attempt to tackle soaring US medical costs.
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Trump was joined by nine leaders the pharmaceutical industry as he announced that costs would "come down fast and furious" in his new "favourite nation prices" healthcare initiative.
Speaking on Friday, the President said deals that will slash the prices of their medicines for the government's Medicaid program and for cash payers, in a bid to bring US prices down to the rates of lower nations.
"Whatever the lowest number is - if it's in Germany, the UK, anywhere, 'we will match that price'.
"We've been laughed at, scoffed at, for years....We'd have a pill for sale in New York for $130 and you could buy it in Germany or France for $10. Now, whatever the lowest price is....the US will pay."
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The President went on to say that if companies failed to lower their costs, he would introduce a 10% tariff on products.
"I told them if you don't do it, we'll have to charge you a 10 per cent tariff, so they immediately agreed to do it.
"They said 'is it a threat?' and I said, 'yes it is a threat' - so they said 'we will do it'."
The Republican president emphasised the high cost of American drugs, quoting that "75% of the pharmaceutical companies' profits come from America" despite them only buying "13% of prescription drugs" in the world.
The full terms of the deals were not immediately released, leaving uncertainty on how the process will go ahead.
"We'll get the lowest price of anywhere in the world," he said.
"If they are lower in England, we'll get the England price.
"Trump RX (Trump prescriptions) is doing well."
Back in October, the US President announced his administration would launch a new website - TrumpRx - to allow American consumers to buy prescription drugs from pharmaceutical companies at discounted prices.
The nine manufacturers involved in the initiative include Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi.
A statement from the White House read:
"The agreements will provide every State Medicaid program in the country access to MFN ['most-favoured-nation'] drug prices on products made by the nine companies, resulting in billions of dollars in savings and continuing President Trump’s historic efforts to strengthen the program for the most vulnerable.
"The agreements ensure foreign nations can no longer use price controls to free ride on American innovation by guaranteeing MFN prices on all new innovative medicines the nine companies bring to market."
According to a 2024 study by RAND Corporation, U.S. prescription drug prices on average are nearly three times higher than overseas, and prices for branded drugs were more than four times higher.