President Donald Trump is once again setting the stage for a major shakeup in American healthcare. In a move that could dramatically lower prescription drug costs, Trump announced on Sunday night that he would sign an executive order on Monday aimed at slashing prescription drug prices by as much as 80%. His plan, which he touted as a “most favored nation” pricing system, promises to finally address the glaring disparity in drug costs that have long burdened American consumers.
In a post on Truth Social, Trump described the upcoming executive order as one of the most impactful actions he’s ever taken, saying, “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.” Trump’s promise to introduce this sweeping change would immediately reduce pharmaceutical prices, delivering relief to millions of Americans who have struggled with the high cost of prescription medications.
The United States currently spends an eye-watering \$400 billion annually on prescription drugs — a figure that is often three times higher than what other nations pay for the same medications. While other countries regulate and cap drug prices, Americans are forced to foot the bill for inflated prices that leave many unable to afford necessary treatments. Trump has long criticized this situation, and his proposed executive order aims to level the playing field by forcing pharmaceutical companies to bring their prices in line with the most affordable rates found globally.
Trump is keenly aware of the outrageous price discrepancies, and he used his post to question why Americans are forced to pay so much more for the same drugs that cost a fraction of the price abroad. “For many years, the world has wondered why prescription drugs and pharmaceuticals in the United States were so much higher in price than they were in any other nation, sometimes being five to ten times more expensive than the same drug, manufactured in the exact same laboratory or plant, by the same company???” Trump wrote. “It was always difficult to explain and very embarrassing because, in fact, there was no correct or rightful answer.”
This announcement marks the return of a policy proposal Trump originally championed during his first term. At that time, he sought to implement the “most favored nation” policy, which would have linked the price of drugs in the U.S. to the lowest price paid among a group of economically advanced nations. However, the policy faced fierce opposition from federal courts and was ultimately blocked. The Biden administration also rescinded Trump’s efforts shortly after taking office, citing legal and regulatory challenges.
Now, with new legal avenues available following the passage of the Democrats’ Inflation Reduction Act in 2022, which allows Medicare to negotiate drug prices for a limited number of medications, Trump sees an opportunity to reignite his battle against Big Pharma. While Medicare can now negotiate prices for some drugs, the scope of the program is narrow, and the savings have been limited. Trump’s new proposal could expand this framework to a broader array of medications, including those purchased in doctor’s offices, which would lead to massive savings for consumers.
In his announcement, Trump teased that the forthcoming executive order would be “one of the most important and impactful” actions he’s ever taken, setting the stage for a potentially monumental shift in how the U.S. approaches healthcare costs. If the new policy resembles Trump’s previous 2020 plan, it could save the government and taxpayers billions of dollars. His first term’s proposal was estimated to save \$85 billion over seven years, primarily by reducing the amount Medicare would pay for certain drugs. Such savings could be crucial in reducing the overall burden on taxpayers, especially as the cost of healthcare continues to climb.
However, experts caution that there could be unintended consequences. While lower prices are undoubtedly a win for consumers, some have warned that a policy like this could limit access to certain medications. Pharmaceutical companies may be reluctant to provide drugs at lower prices, potentially cutting back on their availability or diverting resources away from developing new treatments. While these concerns are valid, Trump’s stance remains clear: it’s time to prioritize American consumers and put an end to the pharmaceutical industry’s stranglehold on pricing.
The pharmaceutical industry has already made it clear that it will fight Trump’s proposal tooth and nail. Big Pharma has historically opposed any measures that threaten to cut into its profits, and with billions at stake, the industry will likely throw all its resources into lobbying against Trump’s executive order. Given the outsized influence of the pharmaceutical sector in Washington, Trump may face significant pushback, but his resolve to take on the status quo seems unwavering.
The proposed plan’s immediate impact could be felt across the country, particularly among senior citizens and low-income families who rely on prescription drugs. For millions of Americans, Trump’s promise of lower drug prices offers a beacon of hope — one that cuts through the rhetoric and exposes the stark reality of what many have known for years: the U.S. is being taken for a ride by pharmaceutical companies. With this executive order, Trump is once again positioning himself as the champion of the American people, standing up to entrenched interests in Washington to deliver tangible results.
If Trump’s executive order succeeds, it could mark a significant victory for American consumers, pushing back against the pharmaceutical giants that have long enjoyed an unchecked grip on pricing. As the details of the executive order emerge, one thing is clear: Trump is not backing down from his mission to make healthcare more affordable for every American.
