How is this riskier or less “mentally sound” than what European countries do? European drug price caps are premised on the threat that, if drug companies don’t sell at those prices, that the government will bar sales of the drug in the country, or drop the drug from coverage under the public health system.

Here, there is no threat that the drugs will be banned from the market completely. The threat is that the drug companies will face high tariffs that reduce sales. That’s a much less extreme threat than what the European countries use as leverage.