Washington, D.C. September 25, 2025
President Donald Trump’s push to force major pharmaceutical companies into adopting his full drug pricing plan is facing stiff resistance from the industry, with just days left before a key deadline.
The White House has demanded that 17 leading drugmakers agree to a “most favored nation” (MFN) policy by September 29, which would effectively tie U.S. drug prices to those paid in other developed countries. Trump argues that Americans have unfairly shouldered higher costs while foreign governments benefit from lower negotiated prices.
But so far, pharmaceutical companies are only meeting the administration halfway. Some firms have offered partial concessions abroad, such as Bristol Myers Squibb selling its schizophrenia drug Cobenfy in the United Kingdom at the same list price as in the U.S., but they have not committed to cutting American prices.
Industry Pushback
Drug companies maintain that deep price cuts in the U.S. would threaten innovation and reduce incentives for developing new treatments. Instead, some are attempting to raise prices internationally rather than lower them domestically.
Executives also argue that pegging U.S. prices downward could weaken America’s position as the global leader in pharmaceutical research and development.
Trump’s Leverage
The Trump administration insists it has tools to enforce compliance. The Center for Medicare & Medicaid Innovation could be used to impose new payment models, while Trump has also threatened sweeping tariffs on drug imports, escalating up to 150% or even 250% if companies refuse to cooperate.
Earlier this summer, Trump signed an executive order giving companies 30 days to propose ways to lower prescription drug costs. The order sparked immediate backlash, with some firms warning it could disrupt investment plans worth billions of dollars.
Political and Legal Risks
The MFN approach is not without obstacles. Previous attempts to impose international price indexing have faced legal challenges, and analysts warn the current plan may end up in court as well. Moreover, the White House has provided few details on exactly how the policy would be implemented or enforced.
What’s at Stake
For American consumers, the standoff represents a defining moment in the long fight over drug affordability. For the pharmaceutical industry, it’s a battle over how much control the government should have in setting prices and whether U.S. innovation will be compromised in the process.
With the September 29 deadline looming, all eyes are on the negotiations. If the industry refuses to comply fully, Trump is expected to act potentially reshaping the economics of drug pricing in the United States.
