Belgium Urges EU to Ready 'Trade Bazooka' as US Drug-Price Fight Escalates

Belgium Urges EU to Ready 'Trade Bazooka' as US Drug-Price Fight Escalates

Vandenbroucke Calls for Anti-Coercion Probe

Belgium's Deputy Prime Minister and Health Minister Frank Vandenbroucke has urged the European Union to prepare its Anti-Coercion Instrument (ACI) for possible use against the United States over Washington's drug-pricing pressure. In a position paper co-authored with his deputy chief of staff Gloria Ghequiere and published Thursday via the Egmont Institute, he argues Brussels should open an ACI investigation into what he calls unlawful coercion. He already previewed the message in an October 6 opening lecture in Ghent, saying the Union must defend its health care model and use the instruments it has.

Eight Ministers Meet in Dublin on Joint Response

At an informal meeting in Dublin last week, ministers from Ireland, France, Germany, Italy, Denmark, Sweden, the Netherlands and Belgium discussed creating an EU-wide pharmaceutical task force to coordinate their response. French Trade Minister Nicolas Forissier stressed a collective reply, saying that without teamwork countries would inevitably be tempted to act alone. The talks followed a two-day informal meeting of EU health ministers in Dublin on September 30-October 1 on medicine availability, supply security and clinical trials.

MFN Policy at the Heart of the Clash

The dispute centers on the Trump administration's "most-favored-nation" (MFN) pricing policy, which seeks to align American drug prices with the lowest rates paid in wealthy countries such as France, Germany and Italy. Washington argues Americans pay far too much for brand-name drugs. In June, the US opened a Section 301 investigation into Germany's alleged "persistent underpayment" for innovative drugs, a step that could bring tariffs above the 15-percent ceiling agreed under the Turnberry trade deal of August 2025. Vandenbroucke proposes suspending tariff concessions granted under that deal if Washington imposes further duties on European goods.

Europe Warned of Tripled Prices, Withdrawn Drugs

Vandenbroucke, an economist by training, warns the net effect would likely be sharply higher European drug prices or the withdrawal of medicines from the market, with only modest cuts in the US. One forecast cited in the paper estimates prices could triple in countries used as benchmarks, while US prices would fall by only 7.5 to 15 percent. The paper also highlights a clause in Pfizer's MFN settlement requiring the company to share with the US government additional revenue from higher prices outside the United States.

Launches Slow as Tariff Threat Looms

The pressure is already visible: about 10 months after the pricing policy began, Europe has seen a 35-percent drop in the number of new drug launches, according to figures cited in Brussels. Companies warn that launching first in Europe risks a lower matched US price, so they may delay European launches unless governments pay more. Health Commissioner Olivér Várhelyi, speaking in Dublin, stressed only that time matters. The "launch first, negotiate later" idea to speed access comes from the European pharmaceutical industry, not from Várhelyi himself. What comes next is whether Brussels opens a formal ACI case -- a step the paper says would have an effect of its own -- and whether Washington escalates tariffs beyond the Turnberry cap.