Trump Announces Plan to Sign Executive Order to Limit Drug Prices

Published: Monday, May 12, 2025 at 7:54 am

Trump to Sign Executive Order Aiming to Slash Drug Prices

President Donald Trump announced on Sunday his intention to sign an executive order on Monday that would cap prescription drug and pharmaceutical prices in the United States. The order, according to Trump, aims to ensure Americans pay the same prices as the lowest-cost nations globally, a policy he's dubbed the "most favored nation" approach.

Trump, in a post on Truth Social, claimed the order would lead to "almost immediate" price reductions of 30% to 80% and save the country "trillions of dollars." He framed the move as a crucial step towards fairness, addressing the long-standing issue of Americans paying significantly more for prescription drugs than citizens in other developed countries. The signing was scheduled for 9 a.m. EDT at the White House.

The pharmaceutical industry, however, has strongly criticized the announcement. PhRMA, the industry's leading trade group, argues that the policy is detrimental to American patients. They claim it will cut billions from Medicare, potentially hindering patient access to medications and jeopardizing investments in American drug development. PhRMA president and CEO Stephen J. Ubl stated the plan could make the U.S. more reliant on China for innovative medicines.

The details of the executive order were reportedly still being finalized last week, according to Politico. The order is expected to focus on a selection of drugs within the Medicare program.

BNN's Perspective:

While the intention to lower drug prices is laudable, the potential consequences of this executive order are complex. The pharmaceutical industry's concerns about reduced investment in research and development are valid. A balanced approach that addresses both affordability and innovation is crucial. The long-term impact of this policy will depend on its implementation and how it navigates the competing interests of patients, the pharmaceutical industry, and the government.

Keywords: Trump, executive order, drug prices, prescription drugs, pharmaceutical prices, Medicare, most favored nation, healthcare costs, PhRMA, Stephen J. Ubl, price reduction, affordability, innovation, China, Truth Social

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