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Trump to Sign Executive Order to Cut Prices of Medicine to Match Other Countries

Monday 12 May 2025 - 11:34
Trump to Sign Executive Order to Cut Prices of Medicine to Match Other Countries
By: Zahouani Ilham
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U.S. President Donald Trump announced he would sign an executive order aimed at lowering the cost of prescription drugs in the United States by aligning prices with those in other wealthy nations. According to Trump, Americans currently pay 30% to 80% more than citizens in comparable countries.

In a statement on Truth Social, Trump declared that he would implement the "most favored nation" pricing strategy, which would ensure the U.S. pays no more than the country with the lowest price for the same medication worldwide. This approach, also known as international reference pricing, could significantly reduce drug costs for American consumers.

"The prices will rise elsewhere to level the playing field, finally bringing fairness to the American people," Trump said, though he offered no further specifics.

Sources from the pharmaceutical industry indicated that the executive order is expected to target a broader range of medications than those already included in the price negotiations under President Biden's Inflation Reduction Act. That legislation allowed Medicare to negotiate prices for 10 high-cost drugs, with more negotiations planned for later this year.

However, pharmaceutical companies and lobbying groups have criticized the measure. Alex Schriver, a spokesperson for the Pharmaceutical Research and Manufacturers of America, stated that any form of government price control could negatively affect American patients.

Trump attempted a similar initiative during his first term, but it was blocked in court. At the time, the plan was projected to save over $85 billion across seven years, challenging the country’s annual $400 billion drug spending.

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