Trump to align US drug prices with cheaper foreign rates
Photo: Donald Trump (Getty Images)
US President Donald Trump plans to sign an order to lower prices on prescription drugs, a move expected to save the country "trillions of dollars," according to Bloomberg and Trump’s post on Truth Social.
In a social media post, the US president stated that he plans to sign the corresponding order on Monday, May 12.
Trump predicted that pharmaceutical prices in the US could drop by 30–80%.
At the same time, he noted that drug prices would likely "to rise throughout the world in order to equalize and, for the first time in many years, bring fairness to America."
Trump announced his intention to ensure that the US pays "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," read the US president’s post on Truth Social.
Drug prices in US
Americans pay more for medications than any other country in the world, which, according to Bloomberg, fuels innovation and drives growth in the pharmaceutical industry.
Previously, drug manufacturers argued that reforming the system would cut revenues and "choke off" the development of breakthrough treatments that could extend and improve lives.
Currently, the US government is negotiating prices for some of the most expensive drugs used under Medicare as part of the Inflation Reduction Act, passed in 2022 under former President Joe Biden.
The first two rounds of drug price negotiations in the US did not include doctor-prescribed drugs, but the next round might.
Trump’s plan to cut drug prices
During his first presidential term, Trump proposed launching a Medicare pilot program for drugs without cheaper generic competition, administered in doctors’ offices.
At the time, he said he wanted to align prices with countries like France and Japan, where costs are significantly lower.
That plan was implemented over three years and aimed to ensure that Medicare would pay the lowest price offered among a group of 22 countries.
However, those efforts were struck down in a US federal court after pharmaceutical companies challenged them, arguing that the administration had failed to follow proper rulemaking procedures.
The Biden administration did not appeal the decision. Instead, it passed legislation that led to the Inflation Reduction Act.
Notably, in a previous Truth Social post, Trump promised "one of the most important and impactful" announcements he had ever made. However, his latest post does not specify how the executive order will work.
