Trump Targets Big Pharma with Price Demands and Swiss Tariffs Raise Questions on Legality

President Trump sent letters to 17 major pharmaceutical companies, urging them to lower their prices in the US to match international levels. This move comes as the President continues his campaign against Big Pharma. Additionally, the US has imposed tariffs on Swiss goods in response to Swiss tariffs on US goods, and a lawsuit has been filed to challenge the legality of the tariffs.

President Donald Trump has taken further action against high drug prices in the United States by sending letters to the CEOs of 17 major pharmaceutical companies, urging them to lower their prices to match international levels. The move comes as part of his ongoing campaign against Big Pharma. Additionally, the Trump administration has imposed tariffs on Swiss goods in response to Swiss tariffs on US goods, and a lawsuit has been filed to challenge the legality of these tariffs.

In a letter released on July 31, President Trump pressed pharmaceutical companies to implement "most favored nation" pricing for Medicaid patients, guarantee such pricing for new drugs, and return excess overseas revenue to American patients and taxpayers. The companies have been given until September 29 to respond with binding commitments to these terms [1].

The White House press secretary, Karoline Leavitt, stated that the prices Americans pay for brand-name drugs are more than three times the price paid in other developed nations. The administration has vowed to deploy every tool in its arsenal to end "abusive drug pricing practices" [1].

The pharmaceutical companies targeted by the letter include Eli Lilly, Novo Nordisk, Pfizer, EMD Serono, Gilead, Novartis, Bristol Myers Squibb, Boehringer Ingelheim, AbbVie, Johnson & Johnson, Genentech, Amgen, AstraZeneca, Sanofi, Regeneron, Merck, and GSK. On the day the letter was released, the stock prices of these companies plunged significantly [1].

The Trump administration has also imposed tariffs on Swiss goods, raising the tariff rate from 10% to 39%. This move comes in response to Swiss tariffs on US goods. Switzerland has expressed surprise at the tariff hike, stating that it was not part of the draft joint statement agreed upon in July. The Swiss manufacturing trade group Swissmem has criticized the tariff hike, warning that it puts tens of thousands of jobs at risk [2].

A lawsuit has been filed to challenge the legality of the tariffs, and the U.S. Court of Appeals for the Federal Circuit is preparing to rule on whether the Trump administration has the legal authority to bypass Congress with its tariff negotiations. The U.S. Trade Representative, Jamieson Greer, has stated that the countries involved in these negotiations understand the leverage created by President Trump and that the deals will likely stick regardless of the court's ruling [3].

References:
[1] https://www.mk.co.kr/en/world/11383237
[2] https://www.reuters.com/business/healthcare-pharmaceuticals/trump-pressures-17-pharma-ceos-cut-us-drug-prices-2025-07-31/
[3] https://seekingalpha.com/news/4476714-market-voices-trump-vs-big-pharma-swiss-tariffs-tariff-legality