Trump Vows Executive Order to Lower Drug Prices to Match Global Rates

It is Washington. President Donald Trump has announced that he will sign an executive order that will establish a “most favored nation” policy for drug pricing. This will revive a proposal that he proposed during his first term in office, which he stated would slash the cost of pharmaceuticals and prescription drugs “almost immediately, by thirty to eighty percent.”

In the order that President Trump intends to sign on May 12 at nine o’clock Eastern Time, it is anticipated that the United States Department of Health and Human Services will be directed to adopt the policy, which would set the pricing of prescription drugs to be comparable to those of countries that are comparable.

There was a lack of clarity regarding the complete particulars of the directive, which was met with swift opposition from the pharmaceutical industry. This consisted of the insurance programs and medications that would be included in the effort. A “most favored nation” rule that would have extended to Medicare payments was proposed by Trump in 2020, during his first term as president. However, the proposal was ultimately repealed by the administration of Vice President Joe Biden.

According to a post that Trump made on Truth Social on May 11th, he stated, “I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World.” “Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before.”

According to a report that was published in 2024 by the Department of Health and Human Services, the cost of medications in the United States is roughly three times higher than the prices in 33 nations that serve as comparisons. There are approximately 67 million people in the United States who are registered in Medicare.

Last week, Politico was the first publication to disclose that President Trump intended to sign the drug price order. The publication stated that Trump intended to pursue the policy for specific medications that are covered by the Medicare program.

“Any form of government price setting is detrimental to the overall health of American patients.”
Those who manufacture pharmaceuticals anticipate that the order will apply to a wider range of medications than the ten that are subject to Medicare’s negotiated pricing as a result of Biden’s Inflation Reduction Act. The bill that was passed under the Biden administration is scheduled to take effect in 2026, decreasing prices.

People who are opposed to the idea of the “most favored nation” contend that pharmaceutical corporations may manipulate the system by negotiating rebates with governments in other countries in order to keep the prices of their medications at the same level in the United States. Some people believe that if the pharmaceutical sector experiences a loss of income, it could hinder innovation in the medical field.

“Government price setting in any form is bad for American patients,” said Alex Schriver, a spokesperson for the Pharmaceutical Research and Manufacturers of America, the leading lobbying arm of the pharmaceutical industry, in a statement in response to a question about the proposed executive order that President Trump is going to issue.

In the days leading up to his departure on May 12 for a trip to the Middle East that will include stops in Saudi Arabia, Qatar, and the United Arab Emirates, President Trump has subtly hinted at a “very big announcement” regarding the imminent announcement regarding the pricing of pharmaceuticals. It was “as big as it gets,” he asserted.

Shortly before he made the announcement that he would be signing the executive order, Trump posted the following message on Truth Social: “My next TRUTH will be one of the most important and impactful I have ever issued.”