Let’s be careful here. If we slash pharmaceutical company earnings, then the money won’t be there for all the wonder drugs they regularly come up with.
Better to work through trade deals to reduce the ability of other countries to offer drugs produced here at reduced prices.
According to the Washington Examiner:
The White House is writing an executive order that would reduce what the U.S. pays for drugs so that it’s more in line with the lowest price paid elsewhere in the world, Trump told reporters Friday.
“As you know, for years and years other nations paid less for drugs than we do,” Trump said Friday at the White House. “Sometimes by 60-70%. We’re working on it right now, we’re working on a favored nations clause, where we pay whatever the lowest nation’s price is. Why should other nations — like Canada — but why should other nations pay much less than us? They’ve taken advantage of the system for a long time, Pharma.”
Trump said the announcement was coming “very shortly” but did not provide other details about how the plan would work. A “favored nations clause” refers to a contract in which a seller gives buyers the same best terms that it offers to other buyers.