Trump Vows Drastic Drug Price Cuts with New Executive Order
TEHRAN (Tasnim) – US President Donald Trump on Sunday pledged to slash prescription drug prices by as much as 80% through an executive order he plans to sign Monday, reviving a controversial proposal repeatedly opposed by the pharmaceutical industry.
Trump described the move on Truth Social as “one of the most important and impactful” announcements of his political career.
He said the executive order will establish a “most favored nations” policy, mandating that the US pays no more for medications than the lowest price paid by other countries.
“Our Country will finally be treated fairly, and our citizens’ Healthcare Costs will be reduced by numbers never even thought of before,” Trump stated.
He added, “We are going to do the right thing, something that the Democrats have fought for many years.”
The announcement lacked specific implementation details or a clear timeline for achieving the proposed savings.
According to Politico, the White House plans to target a group of drugs purchased through Medicare, the federal health insurance program.
Efforts to include similar provisions in a congressional spending package were unsuccessful, as Trump and House Republicans failed to reach agreement, Punchbowl News reported.
A 2024 study by RAND found that US prescription drug prices are nearly triple those in 33 other high-income countries.
Many of these nations regulate drug prices using international reference pricing and evaluations of clinical benefit.
Trump previously attempted to introduce similar pricing reforms in 2018 and again in 2020, both of which faced industry resistance and legal setbacks.
Although a 2023 Trump campaign video promoted the idea again, it was later removed from official channels.
The current iteration marks at least the fourth time Trump has pursued the policy.
Under former US President Joe Biden’s 2022 Inflation Reduction Act, Medicare gained limited power to negotiate drug prices directly with manufacturers.
That law is expected to generate nearly $8 billion in savings once fully in effect by 2026.
Drugmakers anticipate Trump’s plan could apply to a broader range of medications than the initial 10 covered under the Biden measure.
Industry groups have warned that such policies may deter investment in pharmaceutical research and development.
“Government price setting in any form is bad for American patients,” said Alex Schriver, spokesperson for the Pharmaceutical Research and Manufacturers of America.
Trump acknowledged resistance from the sector, stating, “Campaign Contributions can do wonders, but not with me, and not with the Republican party.”
He has also raised the possibility of imposing tariffs on pharmaceutical products.
Despite skepticism from some Republicans, others have expressed support for pricing reform.
On Monday, Senator Josh Hawley (R-MO) and Senator Peter Welch (D-VT) introduced legislation to prohibit US drug prices from exceeding an international average.
