It was quite an eventful week in the United States, ending with government shutdowns after Democrats and Republicans couldn’t find common ground on health benefits.
However, despite what some media outlets might suggest, the bigger healthcare story this week wasn’t really about the shutdown. On Tuesday, the Trump administration made a deal with Pfizer to lower drug costs for Americans, breaking a trend where U.S. patients had been paying significantly more—over four times—than those in Europe for the same medications.
Under the new agreement, Pfizer committed to ensuring that the prices of new drugs in the U.S. won’t exceed those in other affluent countries. They will also sell medications to Medicaid at reduced rates and offer discounts to uninsured Americans.
This contract is a huge relief for many families living paycheck to paycheck, as it could mean hundreds saved monthly on essential medications. As Robert F. Kennedy Jr., head of the Department of Health and Human Services, stated, “Families shouldn’t have to choose between filling prescriptions and putting food on the table.”
Cutting drug costs has been a longstanding promise from Democrats, yet it was Trump—the Republican president—who managed to deliver on it. This incident could be seen as a significant moment where Trump outmaneuvered Democrats to connect with working-class Americans. So, how did he manage to accomplish this?
Trump disregarded experts who generally hold that healthcare is typically a Democratic issue. Instead, he utilized tariffs as a way to push Pfizer towards reshoring drug production and placing more responsibilities on other nations. This shift positioned the interests of private companies better aligned with consumer needs.
Moreover, he had RFK Jr. and Dr. Mehmet Oz, the federal administrator for Medicare and Medicaid Services, move forward during this process. These tactics illustrate Trump’s approach in making his deal happen.
- Disregard traditional advice.
- Identify and align with the interests at play.
- Stay persistent and adaptable when better offers arise.
I guess it boils down to this: Ignore, align, and play the long game.
But Trump’s strategy isn’t just limited to domestic policy; it extends to international relations as well. Earlier in the week, he met with Israeli Prime Minister Benjamin Netanyahu, suggesting a 21-point peace plan focused on registering Hamas to bring an end to the conflict in Gaza. This is no small feat; Netanyahu has been resistant to calls for ceasing the war until Hamas is fully dismantled, especially after tensions escalated following bombings in Qatar.
Still, it appears Trump managed to establish some common ground. The plan aims for the quick release of hostages, ending hostilities, and even the potential restructuring of Gaza, contingent upon Hamas’s compliance.
Utilizing a similar methodology as before, he ignored conventional wisdom in the Middle East regarding conflicts, which often revolves around differing values. Trump took a clear stance in favor of Israel but earlier in his term, he also visited Gulf countries, securing considerable U.S. investments. This led to a better relationship with those nations, showing he had their best interests in mind.
He understood both the Israeli and Arab viewpoints, which allowed him to influence Netanyahu into reaching out to Qatar for reconciliation after the bombings, thereby gaining their trust. Additionally, Trump signed an executive order affirming U.S. security commitments to Qatar, signaling seriousness in advancing Israeli interests.
Interestingly, this series of events likely wouldn’t have unfolded without Israel’s actions towards Qatar. Trump’s team perceived the situation as an opportunity rather than a setback. They believed the unity among Arab nations could be leveraged for peace.
It’s a classic case of ignoring expert advice, adjusting strategies, and playing longer games while being prepared to pivot as needed. If Hamas agrees to the deal, history could record it as a victory for a president who has mastered negotiation both at home and abroad.
