president donald trump tell the audience Thousands of executives and global leaders at the World Economic Forum said the situation in European countries had worsened. Trump said friends visiting the continent told him they did not recognize the region and “not in a positive way.”
“I love Europe and I want to see Europe go well,” Trump said Wednesday at a conference in Davos, Switzerland. “But it’s not going in the right direction.”
But the president acknowledged that Europe does one thing better: keeping drug prices low.
“A pill that costs $10 in London costs $130. Think about it, $10 in London, $130 in New York or Los Angeles,” he whispered to the crowd.
Trump’s friends may not know Europe, but Trump said he had other friends back from London and talked about the affordability of drugs there. In fact, in 2024 rand study The study found that by 2022, U.S. consumers will pay an average of 2.78 times more for all drugs than 33 other countries, including France, Germany and the United Kingdom.
The president has adopted a “most-favored-nation” policy aimed at lowering drug costs for Americans while pushing other countries to pay more. Trump made concerted efforts to address astronomical drug costs during his second term, including Agreements with 17 pharmaceutical companies Slashing U.S. prices to match overseas drug costs. The move follows a sweep executive order The most-favored-nation policy was introduced in May. On Wednesday, Trump mentioned executive order He signed an agreement last week pledging to reduce drug prices by up to 90%.
with french influence
Trump said drug companies initially didn’t think countries would be willing to change prices. In his speech, Trump pointed out that he first approached French President Macron about raising drug prices, but Macron rejected it.
“I said, ‘Emanuel, you have to raise the price of this drug,'” Trump said.
Trump said the threat of 25% tariffs on French goods, including wine and champagne, ultimately led to the deal. Macron’s office disputed Trump’s assertion that he pressured the French president to lower drug prices.
Macron’s office said in a statement: “President @EmmanuelMacron allegedly raised drug prices. He does not set drug prices. Drug prices are regulated by the social security system and have in fact remained stable.” X posts. “Anyone who has been to a French pharmacy knows this.”
The post included a GIF of Trump with animated “Fake News!” text overlaid on the image.
Health policy experts say U.S. drug prices are so high Due to different system structures Systems from other countries allow companies to negotiate with individual insurers or pharmacy benefit managers, giving them more leverage to raise prices than systems from other countries, where only one regulator negotiates drug prices for the population.
The effectiveness of Trump’s efforts to lower drug costs
Industry leaders believe Trump’s efforts to lower drug costs may pay off. Vas Narasimhan, CEO of pharmaceutical giant Novartis,Tell wealthJeremy Kahn U.S. House of Representatives meeting In Davos on Wednesday, Trump pointed to the high cost of drugs in the United States as a valid problem.
about Two-thirds of new drugs Products on the market over the past decade have come from the United States, a result of its highly developed research and development (R&D) infrastructure. Some argue that other countries benefit from U.S. innovation but are not paying their fair share to support the industry’s growth.
“When you look at what the R&D base of our industry is, it’s primarily in the United States,” Narasimhan said. “The United States is where more than half of the industry’s profits come from, and without the United States, there wouldn’t be all these innovations, all these incredible drugs.”
Narasimham stressed the need for a “more balanced approach” to funding research and development, meaning other countries should pay more for drugs produced in the United States. He pointed to Trump’s deal with 17 pharmaceutical companies as a “reasonable” solution.
However, early signs suggest drug prices are not falling. January Report Drug price research firm 46brooklyn found that drug companies, including 16 companies that have had deals with Trump since September, raised drug prices on at least some drugs in the first two weeks of 2026. The median price increase for the 872 brand-name drugs that increased was approximately 4%, the same as the previous year.
Reuters There were similar reports earlier this month, citing data from 3 Axis Advisors, of 17 pharmaceutical companies. Raise prices on 350 medicines. Public health experts attribute the increase to the behind-the-scenes nature of deals between drug companies and insurance companies.
“These deals are being heralded as transformative, but in fact they’re really just eating into the real reasons why prescription drug prices are so high in the United States,” Dr. Benjamin Roman, a health policy researcher at Brigham and Women’s Hospital in Boston, told the outlet.
There was no immediate response from the Department of Health and Human Services. wealthRequest for comment.