Trump Brokers Major Drug Price Cuts in the U.S.; What It Means for India

Washington, D.C.: In a landmark move, U.S. President Donald Trump has struck a deal with nine major pharmaceutical companies to significantly lower drug prices in the country. Trump emphasized that for decades, Americans have been forced to pay some of the highest prices for medications globally. Under the agreement, several key drugs will see substantial price reductions.

Impact on Global Pharma and India
This announcement is expected to have far-reaching effects on the global pharmaceutical market, including India’s generic drug exports. The U.S. is now moving toward an international reference pricing system to determine drug costs. The nine pharmaceutical giants—Merck, Bristol Myers Squibb, Amgen, Gilead, GSK, Sanofi, Roche’s Genentech, Boehringer Ingelheim, and Novartis—have agreed to lower prices to avoid tariffs and ensure competitive pricing in the American market.

Speaking at the event, President Trump stated, “Americans will finally have access to their favorite medicines at fair prices. This historic deal ensures that the U.S. pays the lowest prices comparable to other leading countries.” He further claimed that the price reductions could range from 300% to 700% for certain medications.

Pressure on Foreign Governments
Trump also indicated that the U.S. may use tariffs as leverage to push foreign governments to lower drug prices. He linked the policy to domestic manufacturing, noting that several companies are moving production facilities to the U.S., boosting local pharmaceutical manufacturing.

Implications for India
India, a leading producer of generic medicines, could see direct impacts from this policy. Indian pharmaceutical companies have long supplied affordable drugs to the U.S., especially for chronic conditions. Any international pricing initiatives or tariff-based measures by the U.S. will be closely monitored by Indian exporters, as the American market remains a crucial destination for Indian medicines.

Companies Involved
The nine companies partnering with the Trump administration in this historic deal include Merck, Bristol Myers Squibb, Amgen, Gilead, GSK, Sanofi, Roche’s Genentech, Boehringer Ingelheim, and Novartis. The agreement is expected to redefine the cost of medications in the U.S., balancing affordability for patients with sustainable revenue for research and innovation.