Foreign drugs could become costlier in the US soon
What's the story
The Donald Trump administration is gearing up for a new investigation into the drug pricing practices of US trading partners, as per the Financial Times. The move could lead to tariffs on imported pharmaceuticals, as Washington seeks ways to lower domestic drug prices. The probe will fall under Section 301 of the Trade Act of 1974 and will look into whether these trading partners are underpaying for drugs.
Pricing disparity
US patients bear brunt of high prescription drug prices
US patients currently bear the brunt of high prescription drug prices, paying nearly three times more than their counterparts in other developed countries. In September, Trump threatened to impose a 100% tariff on imports of branded or patented pharmaceutical products unless companies set up manufacturing plants in the US. However, he has not yet acted on this threat as he continues to push pharmaceutical firms to lower drug prices domestically.
Efforts
Trump urged pharma firms to lower drug prices domestically
Earlier this year, President Trump wrote letters to the leaders of 17 major pharmaceutical companies. In these letters, he urged them to reduce US prescription drug prices to levels comparable with those in other countries. The move was part of his administration's broader effort to tackle the issue of high drug costs and make healthcare more affordable for Americans.