U.S. President Donald Trump on Sunday announced plans to sign an executive order aimed at reducing prescription drug prices to levels paid by other high-income countries, with cuts expected to range from 30% to 80%.
In a post on Truth Social, he explained that the executive order, which he would sign on Monday morning, would implement what is known as “most favored nation” pricing or international reference pricing.
Trump stated that the policy is part of his administration’s broader effort to make medications more affordable for Americans.
He wrote, “I am pleased to announce that tomorrow morning, in the White House, at 9:00 A.M., I will be signing one of the most consequential Executive Orders in our Country’s history. Prescription drug and pharmaceutical prices will be REDUCED, almost immediately, by 30% to 80%. They will rise throughout the world in order to equalize…”
Earlier in the week, Trump had teased an “earth-shattering” announcement, which U.S. media had speculated would focus on drug prices.
U.S. drug prices are among the highest globally
Currently, there is no central government price regulation for all medicines in the U.S. The U.S. pays the most in the world for many prescription drugs, often nearly triple that of other developed nations.
Trump has said he wants to close that spread, but has not publicly specified ho,w and did not provide details in his post. The pharmaceutical industry plays the most important role in determining how much a drug costs, and government influence is limited.
This often leads to enormously high prices for certain drugs, especially in the U.S., where drug costs are particularly expensive compared to other countries.
Previous attempt blocked by legal challenges
During his first term in office, Trump made an attempt to lower drug prices.
The plan was to provide drugs, including insulin and EpiPens, at discounts to people with low incomes and use lower international prices to pay for some drugs provided under the Medicare state insurance program for older adults.
However, the proposal was never implemented due to legal and political opposition.
Expected industry pushback and political tensions It was not initially clear how Trump’s order would work, and pharmaceutical companies were expected to push back.
The Republican suggested that the Democrats fought against bringing down prices.
Biden’s drug price reforms in context
In fact, drug regulation was one of the central issues of Trump’s predecessor, Democrat Joe Biden. In 2022, Biden signed a major legislative package that also authorized Medicare to negotiate certain drug prices. Biden’s measure was considered a milestone.
