Trump to Sign Bold Order Slashing US Medicine Costs Globally

WASHINGTON: President Donald Trump has announced his intention to sign a new executive order aimed at reducing the prices of prescription drugs in the U.S., claiming that costs could drop by 30% to 80%.

This order aims to align American drug prices with the lowest prices paid in other affluent countries, potentially resulting in significant savings for consumers.

In a statement made on Truth Social, Trump indicated that he would enact the executive order on Monday morning, which is part of a strategy known as “most favored nation” pricing or international reference pricing.

The U.S. currently pays the highest costs for many prescription drugs globally, often nearly triple what other developed nations pay. Trump has expressed a desire to reduce this disparity, although he has not yet clarified how he plans to achieve this. His message did not provide further specifics.

“Prices will rise worldwide to create equality and, for the first time in many years, bring FAIRNESS TO AMERICA!” he stated.

“I will implement a MOST FAVORED NATION POLICY, allowing the United States to pay the same price as the country that pays the lowest price anywhere in the world,” Trump continued.

Insiders from the pharmaceutical industry have been anticipating an order focused on Medicare, according to four lobbyists who have been briefed by the White House. Previous reports indicated that such a policy was being considered.

Pharmaceutical companies expect the order to cover a broader range of medications compared to those currently negotiated under President Joe Biden’s Inflation Reduction Act.

This law allows Medicare to negotiate prices for 10 specified drugs, with new prices set to be implemented next year. More drugs are expected to be added to the list later this year.

“Government price controls of any kind are detrimental to American patients,” stated Alex Schriver, spokesperson for the Pharmaceutical Research and Manufacturers of America — the leading pharmaceutical lobbying group — when discussing Trump’s forthcoming executive order.

This isn’t the first time President Trump has sought to connect drug prices to those in foreign countries. During his previous term, a court halted a proposed international reference pricing initiative.

This earlier proposal, set forth five years ago, was estimated by his administration to save taxpayers over $85 billion across seven years, thereby reducing the nation’s annual drug expenditures of more than $400 billion.