Belgium's deputy PM calls for EU 'trade bazooka' against US pharma pricing pressure

Belgium's Deputy Prime Minister Frank Vandenbroucke has called on the European Union to deploy its Anti-Coercion Instrument — informally known as its "trade bazooka" — against Washington over US pressure to raise European drug prices, in a position paper published Thursday by the Egmont Institute think tank, co-authored with his deputy head of cabinet Gloria Ghéquière.

Vandenbroucke, who also serves as Belgium's health minister, said the EU should also be ready to suspend the tariff concessions it granted to Washington under the Turnberry trade deal of August 2025 if the US imposes additional duties on European goods.

The Trump administration has been pressing European governments to pay more for medicines under its "most-favored-nation" policy, which ties American drug prices to the lowest prices charged in a basket of wealthy countries including France, Germany and Italy. Washington argues Americans are unfairly carrying the costs of pharmaceutical research and development.

The US has already concluded most-favored-nation pricing agreements with 26 pharma companies. In June, Washington launched a Section 301 investigation into Germany's alleged "persistent underpayment" for innovative drugs, a process that could lead to additional tariffs exceeding the 15% ceiling agreed under Turnberry.

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. French Trade Minister Nicolas Forissier told POLITICO that "if we don't work together and act as a team" countries are tempted to pursue unilateral approaches.

The paper also highlights a clause in Pfizer's most-favored-nation agreement requiring it to share additional revenue from higher prices outside the US with the American government, arguing that higher foreign payments thus become a direct revenue source for Washington.