President Trump Announces Plan to Sign Executive Order Aiming to Reduce US Drug Prices

On May 12, 2025, President Donald Trump revealed a new policy initiative intended to address the high cost of prescription medications in the United States. He claims that the forthcoming policy could reduce drug prices in the U.S. by as much as 30% to 80%, potentially bringing significant relief to American consumers burdened by soaring pharmaceutical expenses.

Trump announced via social media his intention to sign an executive order at 9:00 am (1300 GMT) that would implement a "Most Favored Nation" policy. This policy would tie the cost of drugs sold in the US to the lowest price paid by other countries for the same medications, a principle rooted in World Trade Organization rules designed to promote fair trade practices.

Under this plan, prescription drug prices in the United States would decrease, while costs in other countries might increase to offset the reductions domestically. The goal is to create greater fairness in drug pricing through international comparison.

This initiative is not the first attempt by Trump to lower drug costs. During his previous term in office (2017-2021), he proposed similar measures, but those efforts faced strong opposition from the pharmaceutical industry, preventing implementation. Recently, Trump signed another executive order aimed at lowering drug prices by empowering states to negotiate better prices abroad and streamlining price negotiation processes.

As of now, the White House has not provided detailed specifics about the new policy. The move has generated considerable attention in the healthcare and political spheres, emphasizing the ongoing debate over drug pricing reform in the United States.

Source: https://medicalxpress.com/news/2025-05-trump-aimed-drug-prices.html