[maest]

Your response is fair. I didn't present the argument fully - there is on last step which says "therefore, EU is somehow indebted to the US". That last step is, I think, less defensible.

Also, even in the absence of the "indebtedness" conclusion, the subsidy argument assumes that pharma companies would reduce their R&D spend, instead of just accepting lower margins if the US could more aggressively negotiate drug prices.