Trump Revives Plan to Slash Drug Prices with Executive Order
Donald Trump announced on Sunday night that he’ll sign an executive order to cut prescription drug prices by linking them to the lowest rates paid by other countries. Calling it one of the most significant orders in U.S. history, Trump said the move would bring “FAIRNESS TO AMERICA” and reduce costs “almost immediately by 30 per cent to 80 per cent.” He added that the U.S. will adopt a “most favored nation” policy, making drugmakers charge Americans the same as the cheapest-paying nation globally.
This isn’t the first time Trump has pushed for international reference pricing—his previous attempt during his first term was blocked in court. While details of the new plan remain unclear, industry insiders believe it will go beyond Biden’s Inflation Reduction Act, which already targets pricing for 10 drugs. The pharmaceutical lobby is not on board, warning the plan could hurt innovation and limit access to medications. “This Foreign First Pricing scheme is a bad deal for American patients,” said PhRMA CEO Stephen Ubl.
The announcement triggered an immediate market reaction, with pharmaceutical stocks sliding across Asia and Europe. While Trump dismissed concerns about the impact on research or drug availability, experts and analysts remain skeptical. “The more grandiose Trump’s proposed executive actions, the less likely they are to be implemented,” said analyst Chris Meekins. Still, Trump appeared undeterred: “Campaign Contributions can do wonders, but not with me.”
