Your cart is currently empty!
President Trump Announces Executive Order to Slash Prescription Drug Prices by 30-80%
President Trump announced on Truth Social Sunday evening that he will sign an executive order on Monday morning aimed at reducing prescription drug prices in the United States by 30% to 80%. The order, which President Trump described as “one of the most consequential” in U.S. history, seeks to implement a “Most Favored Nation” policy, aligning U.S. drug prices with the lowest prices paid by other countries.
In his post, President Trump highlighted the long-standing disparity in drug pricing, noting that medications in the U.S. can cost “five to ten times” more than in other nations, even when produced by the same company in the same facilities. He attributed high prices to pharmaceutical companies’ claims of research and development costs, which he said have been unfairly borne by American consumers. “Campaign Contributions can do wonders, but not with me, and not with the Republican Party,” he wrote, positioning the move as a break from past influences.
Ad
The executive order, set to be signed at 9:00 a.m. in the White House, will direct the Department of Health and Human Services to pursue international reference pricing, a policy President Trump attempted during his first term but was blocked by a federal court and later rescinded by the Biden administration. The new order is expected to focus on Medicare payments for certain drugs, though details on its scope and implementation remain unclear. President Trump claimed the policy would yield “almost immediate” savings and could save the U.S. “trillions of dollars.”
The announcement drew mixed reactions. Supporters, including conservative activist Charlie Kirk, praised the move as a blow to pharmaceutical lobbying, with Kirk stating on X, “Big Pharma’s lobbying of Washington DC has long allowed them to price gouge Americans. No more.” However, critics expressed skepticism. Anti-Trump influencer Ed Krassenstein argued on X that the promised reductions are unrealistic without congressional action, noting, “An executive order can steer Medicare or Medicaid payments, but it cannot force manufacturers to cut the list price they charge private insurers.”
The pharmaceutical industry, represented by the Pharmaceutical Research and Manufacturers of America (PhRMA), opposed the plan. PhRMA spokesperson Alex Schriver called government price-setting “bad for American patients,” warning it could harm innovation. Stephen Ubl, PhRMA’s president, described the policy as a “Foreign First Pricing scheme” that could cut billions from Medicare without guaranteeing patient benefits.
This is not President Trump’s first effort to address drug prices. In April 2025, he signed an executive order to improve Medicare’s drug price negotiation program, align payments with hospital acquisition costs, and lower insulin prices for low-income patients. That order aimed to build on the Inflation Reduction Act’s framework, which enabled Medicare to negotiate prices for 10 drugs in 2024, with 15 more, including Ozempic, slated for 2025.
Analysts caution that the new order’s ambitious claims face significant hurdles. Legal challenges, similar to those that blocked President Trump’s 2020 attempt, are likely, as the pharmaceutical industry has historically resisted international pricing models. Raymond James analyst Chris Meekins noted that “the more grandiose [President Trump’s] executive actions, the more likely they’ll be successfully challenged in court.”
Additionally, the order’s impact on private insurance and pharmacy prices remains uncertain, as executive authority is limited without legislative support.
President Trump’s announcement comes amid broader efforts to address healthcare costs, including a February 2025 executive order mandating price transparency from hospitals and insurers. The White House has not yet released the full text of the new order, leaving questions about its enforcement and timeline.
As the administration moves forward, the policy’s success will hinge on navigating legal, industry, and political obstacles to deliver on its promise of “fairness to America.”
Leave a Reply