The former US president aims to lower prescription drug costs by aligning them with the lowest prices globally.
Donald Trump is planning to sign an executive order designed to significantly reduce prescription drug prices in the United States, potentially by as much as 80%. He described the forthcoming order as “one of the most important and impactful” actions of his career.
Trump initially hinted at the order on his Truth Social platform, stating his “next TRUTH will be one of the most important and impactful I have ever issued.”
He later clarified that he would be signing “one of the most consequential Executive Orders in our Country’s history,” with the goal of lowering prescription drug prices by matching them to the lowest prices found worldwide. The signing is scheduled for 9am Monday.
“I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World,” Trump stated, adding that “Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30 percent to 80 percent.”
The United States currently spends approximately $400 billion annually on prescription drugs, often paying significantly more than other countries, according to the National Health Expenditure Accounts.
Trump asserted that the proposed change will “for the first time in many years, bring FAIRNESS TO AMERICA,” save trillions of dollars, and decrease healthcare costs across the nation.
He also stated that “Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before.”
The policy would affect Medicare, which provides insurance to around 70 million older Americans. During his previous presidency, Trump attempted to lower prices for drugs administered by physicians by comparing them to prices in other countries with government-regulated pricing. However, this order was blocked by US courts and subsequently rescinded by the Biden administration.
Legal obstacles to such policies were removed in 2022 when Congress passed the Inflation Reduction Act, which granted Medicare limited negotiating powers.
The Pharmaceutical Research and Manufacturers of America, which previously sued the Trump administration over similar efforts, told the Financial Times that “government price setting in any form is bad for American patients” and attributed rising costs to “middlemen in the system.” The pharmaceutical industry has also opposed price caps, suggesting they could stifle innovation and reduce research funding.
Trump dismissed these concerns, accusing drug companies of using research costs as a pretext for overcharging consumers, stating that “All of these costs were, and would be, for no reason whatsoever, borne by the ‘suckers’ of America, ALONE.”