The move aims to align American drug costs with the lowest international standards, a strategy that could significantly impact major generic suppliers like India
Washington: In a major policy shift with potential ripple effects across the global pharmaceutical industry, US President Donald Trump has announced sweeping reductions in prescription drug prices. The move aims to align American drug costs with the lowest international standards, a strategy that could significantly impact major generic suppliers like India.
Speaking alongside Health and Human Services Secretary Robert F. Kennedy Jr. and top pharmaceutical executives, Trump declared that Americans would soon benefit from “most favored nation” pricing.
“For decades, Americans have been forced to pay the highest prices in the world,” Trump stated. “You’re going to get most favored nations pricing. We will get the lowest price anywhere in the world.”
The President claimed that his administration had secured agreements with major drugmakers to slash prices dramatically. “We signed historic agreements to reduce prices by 300, 400, 500, 600, and even 700 percent,” he said, adding that US drug prices would soon be “among the lowest in the developed world.”
Trump emphasized that tariffs would be a key tool in enforcing these changes, compelling foreign governments to align their pricing structures. “We would never be able to do this without the use of tariffs,” he noted.
The announcement was attended by high-profile industry leaders, including Sanofi CEO Paul Hudson, Novartis CEO Vas Narasimhan, and executives from Genentech, Gilead, GSK, Merck, and Amgen. Commerce Secretary Howard Lutnick, CMS Administrator Mehmet Oz, and FDA Commissioner Marty Makary were also present.
Beyond price controls, the policy is tied to an expansion of domestic manufacturing. “They’re coming in and they’re building already,” Trump said, signaling a push to localize pharmaceutical production within the US.
This development is being closely monitored by the Indian pharmaceutical industry, one of the world’s largest producers of generic medicines. As a key supplier of affordable treatments for chronic diseases to the US, Indian exporters operate in a market where domestic prices are typically among the lowest globally.
With the US moving toward international price benchmarking, Indian manufacturers, who rely heavily on the American market for revenue, may face new regulatory and pricing pressures.
