US President Donald Trump has adopted a new aggressive stance in global trade and healthcare diplomacy. To reduce the prices of expensive medicines in America, Trump has put pressure on French President Emmanuel Macron and threatened to impose 100 percent tariff on French wine and champagne. This move has made clear to what extent the Trump administration can use trade policies to solve its domestic problems and as a geopolitical strategy. Huge price differences and talks with foreign leaders Speaking at a steel plant in Rome, Georgia, Trump said American consumers are paying 13 times more for some drugs than in other parts of the world. Speaking to foreign leaders on the phone, he announced a policy of bringing drug prices in America at par with the lowest prices found in other countries. According to Trump, when he called Macron and asked for a change in prices, Macron initially refused, saying that it would put him out of business. In response, Trump threatened to impose 100 percent tariff on all French wine and champagne sold in America, after which Macron agreed to this change. Trump said that he had similar talks with other countries including Germany and Spain and he claimed that those countries have also happily agreed to this step. Tariff Strategy and the US Economy The US President cited this incident as evidence that tariffs are still his most effective form of negotiation. Describing ‘tariff’ as his favorite word in the entire dictionary, Trump said that these trade measures have brought American manufacturing back on track. They are currently awaiting a decision from the US Supreme Court on their authority to impose certain trade duties. Along with this, Trump claimed that America has secured investment commitments of more than $18 trillion in the last 11 months and the stock market is at its record high since the election. Efforts to bring drug prices in the United States on par with international rates have been politically controversial. Pharmaceutical companies argue that such a reduction in prices could have a negative impact on innovation and the global supply chain. The US weaponizing tariffs to drive down domestic drug prices is a major diplomatic shift in the rules of global trade. Trump clearly believes that the US would be in trouble without the tariffs, which clearly signals his future trade decisions and aggressive negotiations. Going forward, it will be important to see how global pharma companies and European countries decide their strategy amid this pressure.