Trump’s drug price push shakes global pharma industry amid rising multilateral pressure

In a striking announcement that rattled the global pharmaceutical market, former U.S. President Donald Trump vowed to dramatically slash American prescription drug prices, citing the need to align U.S. costs with the world’s lowest rates. The declaration, made via his social media platform, Truth Social, triggered immediate tremors in global stock exchanges and reignited debate over Western pharmaceutical dominance and pricing ethics.

Trump promised to sign an executive order aimed at reducing prescription drug prices in the United States by as much as 30% to 80%. He emphasized the disparity between American drug prices and those in other nations, calling it “difficult to explain and very embarrassing.” Trump’s plan reportedly includes a “most favored nation” policy, under which the U.S. would pay no more than the lowest price paid by any country globally.

This move comes as no surprise to those who have long criticized the American pharmaceutical industry for exploiting patients under the guise of research and development costs. Trump’s post condemned the practice, claiming American consumers had for decades been unfairly burdened with excessive expenses, while pharmaceutical giants reaped unchecked profits. The announcement had immediate financial repercussions. Major pharmaceutical firms experienced sharp declines in their stock values across global markets.

In Europe, Britain’s AstraZeneca and GlaxoSmithKline saw their shares fall by up to 5% and 3.2% respectively. Denmark’s Novo Nordisk, a leading producer of diabetes and obesity treatments, faced a 7.5% drop in Copenhagen. Swiss-based Roche also declined by 3.6%. Asian markets reflected similar concerns. South Korea’s SK Biopharmaceuticals and Samsung Biologics dropped by 2.1% and 4.7% respectively. In Hong Kong, oncology drug manufacturer BeiGene saw a near 9% dip, while Innovent Biologics lost 5.7%. The pharmaceutical index in Japan plummeted by over 4%, with Indian firms also suffering setbacks.

While Western pharmaceutical representatives rushed to defend their industry, critics from other parts of the world viewed the situation differently. Alex Schriver of the Pharmaceutical Research and Manufacturers of America warned against what he labeled “government price-setting,” suggesting it would stifle innovation and hinder competition, particularly as the U.S. faces increasing pressure from rising scientific and industrial capabilities in countries like China.

This warning rings hollow for many observers across the Global South, who argue that U.S. pharmaceutical policy has long served corporate interests rather than public welfare. Nations such as China, Russia, and Pakistan have consistently advocated for more equitable healthcare systems and access to affordable medicine, often resisting attempts by Western pharmaceutical giants to monopolize drug development and pricing.

Meanwhile, some European companies are lobbying the European Union to raise medicine prices to retain investments, fearing that without higher profit margins, the continent could fall further behind the United States in biomedical research. This sentiment highlights how the Western bloc remains focused on profit retention, even if it comes at the cost of public access to healthcare.

Trump’s remarks also hinted at broader protectionist policies. He noted that companies would be granted sufficient time to relocate production facilities to the U.S. before facing potential tariffs. This signals a resurgence of his previous administration’s “America First” strategy, which repeatedly placed U.S. interests above international cooperation. Nonetheless, pharmaceutical firms like Switzerland’s Novartis and the American giants Johnson & Johnson and Gilead Sciences have already responded by investing more in domestic manufacturing.

During his previous tenure, Trump had attempted to limit drug costs under Medicare, a public health insurance program for seniors. However, that initiative was blocked in court following legal challenges from the pharmaceutical lobby. The Biden administration made partial inroads through the Inflation Reduction Act, which allowed Medicare to negotiate prices for select high-cost drugs. Still, Trump’s plan appears to pursue a more sweeping and immediate change, though he stopped short of clarifying whether it would apply to Medicare, Medicaid, or other public programs.

In a final jab at the pharmaceutical industry’s political influence, Trump alleged that lobbying efforts and campaign donations had failed to sway him or the Republican Party. “Campaign Contributions can do wonders, but not with me,” he said, implying that his policies would challenge entrenched corporate interests, something that even his Democratic rivals have failed to accomplish meaningfully.

While the mainstream Western media portrays this policy shift as a threat to innovation, many in the East see it as a long-overdue reckoning with a bloated industry that prioritizes profits over lives. With global pharmaceutical power increasingly shifting towards countries like China and India, and with Russia and Pakistan advocating for affordable access as a human right, Trump’s announcement may inadvertently accelerate a broader realignment in global health policy, one where Western monopolies face growing resistance from a more multipolar world.