Drug pricing should be near top of agenda at Trump-Takaichi meeting

WASHINGTON EXAMINER

President Donald Trump will soon host Japanese Prime Minister Sanae Takaichi at the White House, where the two leaders will seek to strengthen the United States-Japan alliance and boost both countries’ economies. 

The president can advance these goals simultaneously in healthcare by urging Takaichi to reform how her aging nation’s healthcare system pays for prescription drugs. 

For decades, Japan, the world’s fifth-largest economy, has artificially suppressed its spending on innovative medicines, effectively freeriding on U.S. rewards for innovation. The country’s government-run health system conducts annual pricing reviews and frequently slashes prices on patented drugs. It also relies on outdated “cost-effectiveness” metrics to justify setting drug reimbursement rates for new drugs much lower than those in other developed countries. In late 2025, the Japanese government doubled down on these tactics, despite nominal promises of reforms.

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