By [Your Name] | Updated June 2, 2025

At a White House event on Monday, former President Donald Trump signed an executive order aimed at lowering prescription drug prices in the U.S.—but not without making a controversial claim. According to Trump, other countries are the reason Americans pay more for their medications.

“We were subsidizing others’ healthcare,” Trump said. “They pay a small fraction for the same drug. The European Union has been brutal. But we’re not going to tolerate profiteering and price gouging anymore.”

It’s a powerful statement, but experts say the facts simply don’t support it.

THE CLAIM:

Trump argues that the U.S. is essentially “subsidizing” cheaper drug prices in countries like those in the EU by paying many times more for the same medications.

THE FACTS: It’s a U.S. System Problem, Not a Foreign One

Yes, Americans pay more for prescription drugs. In fact, much more.

A 2024 RAND Corporation report found that U.S. drug prices were, on average, 2.78 times higher than those in 33 other high-income countries. Brand-name drugs account for most of the gap. The U.S. represented a massive 62% of global drug sales—but only 24% of actual drug volume.

So why the huge difference? Experts say it’s not because other countries are exploiting the U.S., but because of how America’s fragmented pricing system works.

“There are structural differences in the way that we price drugs in the United States,” said Mariana Socal, a health policy expert at Johns Hopkins. “Those differences are what drive the price gap.”

How Drug Pricing Works in the U.S. vs. Abroad

In most countries, a single national agency negotiates drug prices on behalf of everyone. That gives them enormous leverage. In the U.S., by contrast, pricing is negotiated separately by dozens of private insurers and pharmacy benefit managers (PBMs)—a setup that weakens bargaining power and drives up costs.

“Anything that increases negotiating power—like covering more people—puts downward pressure on prices,” explained Courtney Yarbrough, a health policy professor at Emory University.

This isn’t new. It’s the reason drug companies often push higher prices in the U.S. while accepting lower profits elsewhere. A smaller margin overseas is better than no access at all.

What Does Trump’s Executive Order Actually Do?

Trump’s order sets a 30-day deadline for drugmakers to voluntarily lower prices in the U.S. If they don’t, a new “most favored nation” pricing rule would be drafted, tying U.S. drug prices to the lowest prices in similarly developed countries.

It sounds tough, but it’s unclear how much it will affect people with private insurance, since the federal government’s control mainly extends to Medicare and Medicaid.

And no—if U.S. prices drop, other countries won’t automatically start paying more. Experts say those countries may instead cut quiet deals or negotiate steeper discounts behind closed doors.

“We’re not in a static global pharmaceutical market,” Yarbrough added.

Why Drug Prices Stay High: It’s Not Just About Foreign Nations

The real story behind high drug prices in the U.S. has more to do with corporate incentives and market exclusivity. Manufacturers, PBMs, and wholesalers all benefit financially from higher list prices. Many companies also use patents strategically to delay cheaper generics from entering the market.

“There are no saints in this industry,” said Geoffrey Joyce, health policy director at USC’s Schaeffer Center. “Everyone makes more money off of higher list prices, so they keep pushing them up.”

While Trump threatened investigations into Big Pharma at the same press event, he also offered a surprisingly friendly defense of the industry—blaming other nations for their pricing tactics instead.

BOTTOM LINE:

The U.S. isn’t subsidizing other countries’ healthcare. Americans pay more for prescription drugs largely because of how the U.S. market is structured, not because of any unfair pressure from Europe or elsewhere. Trump’s executive order may aim to tackle the issue, but blaming other countries misses the mark.

Source: AP News – FACT FOCUS: Trump blames other countries for high US drug prices. Experts say it’s not their fault

The post Fact Check: Are Other Countries to Blame for U.S. Drug Prices? appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

Claim: President Donald Trump recently claimed the United States “subsidizes Canada to the tune of maybe $200 billion a year.”
Reality: That number doesn’t hold up to scrutiny — and calling it a “subsidy” misses the mark entirely.

What’s This About?

During a recent White House meeting with newly elected Canadian Prime Minister Mark Carney, President Trump revived a familiar talking point — that the U.S. is pouring money into Canada, allegedly in the form of military protection and trade imbalances.

“It’s hard to justify subsidizing Canada to the tune of maybe $200 billion a year,” Trump said. “We protect Canada militarily… But why are we subsidizing Canada $200 billion a year or whatever the number might be?”

So let’s unpack that. Does the U.S. actually give Canada anything close to $200 billion annually? Short answer: No. Not even close.

Where Did the Number Come From?

The White House says the $200 billion claim loosely stems from two things:

1. The U.S. trade deficit with Canada
2. U.S. military spending, particularly on NORAD (North American Aerospace Defense Command)

Let’s break these down.

The Trade Deficit ≠ Subsidy

According to U.S. government data:

• The 2024 trade deficit with Canada (goods and services combined) was about $35.7 billion.
• If you look only at goods, that number ranges higher — $63.3 billion to $70.6 billion.
• The White House estimate? Around $53.5 billion, which matches 2022 figures.

But here’s the issue: A trade deficit is not a subsidy.

“That’s never been the definition of a subsidy,” says Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics. “A subsidy is a gift without compensation.”

Gian Maria Milesi-Ferretti of the Brookings Institution adds that trade deficits reflect different national demands and economic specializations — not handouts.

Military Spending: Not a One-Way Street

The second part of the claim revolves around defense spending.

In 2024:

• Canada spent $29.3 billion on defense (about 1.3% of GDP).
• The U.S., by comparison, spent a whopping $997 billion, or 3.4% of its GDP — well above the NATO-recommended 2% benchmark.

True, Canada falls short of NATO’s target, and yes, Trump has repeatedly called out allies for that. But does that shortfall mean the U.S. is “subsidizing” Canada?

Not exactly, says Mark Cancian of the Center for Strategic and International Studies:

“No, they don’t owe us that money, but they aren’t paying their fair share, and that’s a fair criticism.”

To put it into perspective:

• If Canada were to meet the 2% NATO guideline, it would need to spend around $44.8 billion — meaning it currently underspends by about $15.5 billion.
• Add that to the trade deficit, and you still only reach about $51 billion — a far cry from $200 billion.

Even using the highest goods-only deficit, the total doesn’t exceed $86 billion.

What About NORAD?

NORAD — the U.S.-Canada joint air defense initiative — often comes up in these discussions.

The U.S. does cover about 60% of NORAD costs, based on a 1985 cost-sharing agreement. But actual spending details aren’t public, making the full picture unclear.

Canada has committed significant NORAD investments:

• $4.9 billion USD over 6 years
• $27.7 billion USD over 20 years (on an accrual basis)

Defense economists Binyam Solomon and Ross Fetterly published a 2023 paper analyzing NORAD’s cost-sharing. Here’s what they found:

• The U.S. shoulders roughly 97.6% of North American defense costs but receives 64% of the benefits.
• Canada contributes about 2%, but still benefits from 36% of the security umbrella.
• Adjusting for geographical vulnerabilities flips that benefit distribution sharply in the U.S.’s favor.

In other words, the U.S. may spend more — but it’s also protecting itself.

“Even if the Canadians pulled out, we’d have to have something like [NORAD] in place,” Cancian notes. “So I would not consider that a subsidy at all. Canadians can make a fair argument that we owe them.”

Bottom Line

No, the U.S. does not subsidize Canada by $200 billion a year.
The number is based on a misunderstanding — or misrepresentation — of trade deficits and military cooperation.

Even using inflated estimates, you don’t get anywhere near $200 billion. More importantly, labeling trade deficits and NATO shortfalls as “subsidies” simply isn’t accurate.

Misinformation about international relationships can erode trust and mislead the public. That’s why fact-checking matters — especially when the numbers don’t add up.

Source: AP News – FACT FOCUS: Trump claims the US subsidizes Canada. Experts say the numbers don’t add up

The post No, the U.S. Doesn’t Subsidize Canada by $200 Billion — Here’s the Real Story appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

A wave of anger and defiance swept through the streets of Gaza on Saturday as mourners gathered for the funeral of 22-year-old Oday Nasser Al Rabay. The young protester was found lifeless outside his family home after allegedly being kidnapped, tortured, and executed—his relatives say—by members of Hamas.

His funeral turned into a rallying cry against Gaza’s rulers. Hundreds of mourners marched through the streets, their chants of “Hamas out!” echoing the very demonstrations Al Rabay had participated in. His murder marks the first known retaliatory killing since protests erupted last week across multiple locations in Gaza.

Hamas, the militant group that has controlled Gaza since 2007, has faced growing discontent. Protesters have taken to the streets, demanding change. But speaking out comes at a cost. A Gazan activist now exiled in Turkey, who has been sharing footage of the demonstrations online, claims he has received direct threats from senior Hamas officials.

Despite eyewitness accounts and video evidence, Hamas insists that the protests were directed at Israel, not at their own governance. Al Jazeera, a Qatari-owned media outlet, echoed this narrative. However, other Arabic media sources have reported that the protests were indeed aimed at Hamas.

As tensions escalate, Hamas leaders appear to be weighing their options. According to Israel’s public broadcaster Kan, some within the organization have expressed a willingness to release a few hostages in exchange for a truce during Eid al-Fitr, which begins on Sunday evening. This move could be an attempt to ease pressure and regain public favor amid rising unrest.

Meanwhile, Israeli military operations in Gaza have further constrained Hamas’ ability to suppress protests, limiting their reach and enforcement mechanisms.

Al Rabay’s killing has become a symbol of the risks faced by those who dare to challenge Hamas’ rule. As dissent grows and international attention turns to Gaza, one question remains: Will the people’s anger lead to meaningful change, or will Hamas tighten its grip even further?

Video: Hamas tortures, murders 22-year-old Gazan protest leader

Source: i24News – Family of slain Gazan protester blames Hamas for his death

The post Gaza Protester Killed: Family Blames Hamas for Brutal Execution appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.