Biotechnology is one of the most potent engines of American prosperity. The United States has led the world in turning scientific discoveries into life-saving therapies.

But this leadership didn’t come from government command. It was from a policy environment, imperfect but functional, where risk was rewarded, intellectual property was protected and private markets, not bureaucrats, determined what made it to patients.

That foundation is now in danger. The real threat to American biotech leadership is not Beijing. It is Washington. Recent policies have taken a decisive turn away from markets and toward micromanagement.

The Inflation Reduction Act gave Medicare broad authority to dictate drug prices. In May, the White House issued an executive order reviving a Most Favored Nation pricing model, tying U.S. drug prices to those in countries where government-run systems suppress prices through arbitrary caps and rationing.

And now the Trump administration is proposing efforts to impose 100 percent tariffs through section 232 on pharmaceuticals not made in America and use Most Favored Nation pricing with some Pfizer drugs in exchange for lower tariffs.

These policies may sound politically popular, but their economic effects are clear and deeply harmful.

A National Bureau of Economic........

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