Speaking at the 2026 World Economic Forum in Davos, Donald Trump said threats of tariffs helped correct the "unfairness" of drug prices in the US. According to him, it was a long-term fraud with the prices of medicines. The Trump administration has reached agreements with pharmaceutical firms where manufacturers have provided discounts of up to 90 percent off regular prices.[1] Drug prices in the US are supposed to be based on the "most favored nation" principle, i.e. to correspond to the lowest prices in economically comparable developed countries.[1][3] In July, Trump sent letters to 17 major pharmaceutical companies urging them to negotiate lower prices, particularly for the Medicare and Medicaid programs.[1][2] Recently, the administration announced an agreement with 14 manufacturers to lower prices for Medicaid and self-pay.[3] Nevertheless, pharmaceutical companies plan to increase the prices of at least 350 prescription drugs in 2026.[3] The exact terms of the agreements remain mostly private.[1]