In a move aimed at reducing the cost of prescription medications, US President Donald J. Trump on Monday signed an Executive Order designed to bring U.S. drug prices in line with those of other nations. According to the fact sheet released by White House, the order signals a renewed effort to curb what Trump has repeatedly called “unfair and inflated” prices borne by the US consumers.
The Executive Order directs the U.S. Trade Representative and the Secretary of Commerce to confront foreign nations that undercut U.S. drug prices through what the administration describes as “artificial price controls.” According to Trump, such practices force American taxpayers to shoulder a disproportionate share of global pharmaceutical costs.
“Americans have been subsidizing cheap drugs for the rest of the world for too long,” Trump said in a statement. “This system has hurt our citizens, and it ends now.”
Under the order, pharmaceutical companies will be presented with firm price targets based on the “Most-Favored-Nation” pricing model, which ties U.S. drug prices to those in countries with similar economic standing. The Secretary of Health and Human Services is tasked with establishing a system that allows patients to purchase drugs directly from manufacturers at these lower prices, bypassing intermediaries and potentially saving billions in out-of-pocket costs. Should drugmakers resist these pricing directives, the Secretary is authorised to propose new rules enforcing compliance and to pursue additional measures to counter anticompetitive behavior in the pharmaceutical market.
The Executive Order revives on policies introduced during Trump’s first term, many of which were rolled back by the Biden administration. Citing data showing U.S. prices for brand-name drugs are more than three times higher than in other OECD nations, the Trump team emphasised the country’s outsized role in funding global pharmaceutical profits—despite comprising less than 5% of the world’s population. The move is being framed as part of a broader “America First” healthcare agenda. “Today’s action builds on a proven record,” the Trump campaign said in a release.