Trump’s new plan to cut U.S. drug prices raises questions about Canada’s pharmaceutical supply and pricing. Experts weigh in on the potential impact.
Trump’s Drug Price Reform Targets Foreign Markets — But Will It Touch Canada?
U.S. President Donald Trump is taking aim at high drug prices — and the world is watching. A new executive order seeks to lower the cost of prescription medications for Americans by comparing U.S. prices to those paid by other countries. While the strategy may sound like it could ripple across borders, Canadian regulators and experts suggest the fallout north of the border is likely minimal — for now.
The Plan: Tie U.S. Drug Prices to Global Benchmarks
Under the order, U.S. health officials, now led by Robert F. Kennedy Jr., have 30 days to negotiate lower drug prices with pharmaceutical companies. If those negotiations fail, a new pricing model would be introduced — one that links American drug prices to what’s paid in select foreign countries.
“We’re going to equalize,” Trump said at a press conference. “The rest of the world is going to have to pay a little bit more, and America is going to pay a lot less.”
This strategy is designed to combat the vast pricing discrepancies between the U.S. and other nations — where many pay significantly less for the same medications.
Why Canada Is Unlikely to Feel the Pressure
Despite being a frequent comparison in U.S. healthcare debates, Canada may remain largely unaffected by Trump’s executive order. According to Michael Law, a health policy expert and Canada Research Chair in Access to Medicines at the University of British Columbia, the move isn’t likely to result in any immediate or direct consequences for Canada.
“I don’t think this is actually likely to be a direct threat against Canada,” Law told reporters.
That’s because Canadian drug prices are tightly regulated by federal agencies, most notably the Patented Medicine Prices Review Board (PMPRB), which ensures medication costs remain reasonable.
How Canada Regulates Drug Prices
The PMPRB plays a key role in protecting Canadian consumers. It compares drug prices across 11 other nations — including the UK, Germany, Australia, and Sweden — to determine fair pricing. The United States is not one of these “comparator countries,” meaning changes in U.S. pricing policies don’t directly influence Canadian assessments.
“If the price of a patented medicine is found to be excessive, the Board can order a reduction and enforce that order,” a PMPRB spokesperson said. “We also monitor excess revenues from drug sales.”
Strong Oversight Keeps Canadian Prices in Check
In addition to the PMPRB, Canada relies on the pan-Canadian Pharmaceutical Alliance, which negotiates prices with drug manufacturers on behalf of federal, provincial, and territorial drug plans. This dual-layer of oversight contributes to why Canada’s pharmaceutical prices are consistently lower than those in the U.S. Many other countries follow a similar model, using centralized systems to contain costs and ensure affordability.
Final Thoughts: Political Pressure Without Cross-Border Shockwaves
While the U.S. move to cut domestic drug prices could reshape pharmaceutical negotiations and pricing within its own borders, experts agree Canada’s robust regulatory framework provides a buffer against any immediate supply shortages or cost increases. For Canadians, this means continued access to reasonably priced medication — at least for the foreseeable future.
