U.S. Set to Launch New Probe into Trading Partners' Drug Prices... Potential for Additional Tariffs

Report Cites FT Sources... Investigation to be Initiated Based on Section 301 of the Trade Act

Pills (North Andover, Massachusetts, U.S. AP=Yonhap News) A photo of pills taken in North Andover, Massachusetts on June 15, 2018. (AP Photo/Elise Amendola, file) 2025.10.22.

The U.S. Donald Trump administration is set to launch further investigations into the drug prices of its trading partners, with the potential for additional tariffs to be imposed depending on the results, according to a report by the British daily Financial Times (FT) on the 22nd (local time).

Sources indicate that the impending investigation will be conducted under Section 301 of the Trade Act of 1974, aiming to assess whether any of the U.S.'s trading partners are paying significantly lower prices for pharmaceuticals, the FT reported.

President Trump has repeatedly expressed dissatisfaction that other countries pay less for drugs than the U.S., stating that trade measures would be taken against nations refusing to align their prices to a comparable level.

Last week, President Trump commented on weight-loss pills, saying, "In London, you can get a certain drug for $130, but in New York, you have to pay $1,300 for the same drug."

According to the conservative think tank RAND Corporation, U.S. drug prices are, on average, nearly three times higher than in many other developed countries.

Data from KFF, a non-profit organization specializing in health policy, shows that Ozempic, manufactured by Denmark's Novo Nordisk, costs $936 for a one-month supply in the U.S., but only $147 in neighboring Canada and $83 in France.

With the U.S. government initiating this investigation, there are concerns that global trade tensions, which had subsided for a while, could reignite as the White House gains the authority to impose tariffs on any products or goods it chooses.

Earlier this year, President Trump demanded that pharmaceutical companies supply drugs to the U.S. at the lowest prices globally, warning of consequences if this demand was not met.

Pfizer and AstraZeneca recently announced agreements with the Trump administration to lower the prices of certain drugs.

Novo Nordisk and Eli Lilly have stated that they have held discussions with the White House regarding pricing.

Trump had threatened to impose high tariffs on drugs based on national security investigations, but in trade negotiations with the European Union (EU), he agreed to limit U.S. tariffs on imported drugs to 15%.

In trade negotiations with the UK, the U.S. government agreed to continue discussions on tariffs for imported British drugs.

Last month, President Trump warned that he would impose a 100% tariff on branded drugs from pharmaceutical companies that do not begin building manufacturing facilities in the U.S.

However, this threat was not realized, and U.S. government officials stated that companies would be given time to demonstrate their investments in the U.S. and efforts to lower drug prices.

The FT added that it sought comment from the White House but received no response. Yonhap News