Trump to sign executive order to tie U.S. drug prices to other countries

Published: Monday, May 12, 2025 at 4:50 am

Trump to Sign Executive Order Aiming to Slash US Drug Prices

President Donald Trump announced he will sign an executive order to dramatically lower prescription drug prices in the United States. The order, slated to be signed Monday morning, aims to reduce prices by 30% to 80% by tying U.S. drug prices to those of other countries.

Details of the order remain scarce, but Trump stated it would implement a "Most Favored Nation's Policy." This means the U.S. would pay the same price for drugs as the nation with the lowest price. Trump made the announcement on his Truth Social platform, calling the order "one of the most consequential...in our Country's history."

This isn't Trump's first attempt to tackle drug prices. During his first term, he tried a similar approach via executive order, but faced legal challenges from the pharmaceutical industry. The industry group PhRMA criticized the earlier plan, arguing it would limit access to medicines and hinder new drug development.

While some, like California physician Dr. Houman David Hemmati, view the policy as a step towards fairness, concerns remain. Hemmati noted the potential for drug manufacturers to pull out of markets with the lowest prices, potentially impacting patient access and the development of generic drugs. A January 2024 report highlighted the significant price disparity, with U.S. drug prices being significantly higher than in comparable countries.

Trump claims the new policy will save the U.S. trillions of dollars and drastically reduce healthcare costs. This follows a previous executive order in April directing the standardization of Medicare payments to lower prescription drug costs.

BNN's Perspective: While the goal of lowering drug prices is widely supported, the practicality and potential unintended consequences of this executive order warrant careful consideration. Balancing affordability with the need for pharmaceutical innovation is a complex challenge. The success of this policy will depend on its specific implementation and how it addresses concerns about drug access and the future of drug development.

Keywords: Trump, drug prices, executive order, prescription drugs, healthcare costs, Most Favored Nation, pharmaceutical industry, Medicare, drug access, generic drugs, price reduction, U.S. drug prices, Donald Trump, healthcare policy

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