The pharmaceutical sector is feeling intense pressure right now, with President Trump’s pledge to impose a 100% tariff on prescription drugs manufactured abroad. This threat, on top of the already worrisome executive order issued in May, has created a situation where companies are cutting deals with the White House to avoid pricing regulations in the form of a new website called TrumpRx.
The president is right to question why other developed countries with strong economies and plenty of wealth get better deals when it comes to drug pricing. He is wrong, though, about imposing top-down mandates to try to remedy the matter.
Yes, medical costs are a real concern in the U.S., as they are one of the primary drivers of personal bankruptcy. However, it is important to note that spending on prescription drugs makes up only about 11% of health care expenditures. It is also worth noting that, when it comes to pharmaceuticals, Americans have greater, quicker access than people in any other country.
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