In a fiery announcement on Truth Social, Donald Trump declared he will sign a sweeping executive order aimed at drastically cutting prescription drug costs in the U.S. The order, set to be signed Monday morning, will introduce a “Most Favored Nation” pricing strategy… meaning Americans would pay no more than the lowest price offered in any developed nation.
Trump claims this move could reduce U.S. drug prices by 30% to 80%, a game-changing shift for a country that currently pays some of the highest pharmaceutical costs globally.
“For the first time in decades, we’re going to bring fairness back to the American people,” Trump wrote. “Prices abroad will go up, and our prices will finally come down… leveling the playing field.”
The proposed plan is expected to focus heavily on the Medicare system, expanding beyond the limited scope of price negotiations introduced under President Joe Biden’s Inflation Reduction Act.
Biden’s law allowed Medicare to negotiate prices for just 10 drugs beginning next year, with more expected to follow. Trump’s new executive order could go even further, potentially impacting a broader range of medications.
Industry insiders say drug companies have been bracing for this policy shift, anticipating that it will affect more medications than previously expected. While details remain under wraps, Trump’s move has reignited a fierce debate over how much control the government should have over drug pricing.
The Pharmaceutical Research and Manufacturers of America (PhRMA), the country’s leading drug lobbying group, quickly pushed back. “Government price setting in any form is bad for American patients,” said PhRMA spokesperson Alex Schriver.
