Trump Signs Executive Order to Slash US Medicine Prices by Up to 80 Percent

On May 12, 2025, former U.S. President Donald Trump announced he would sign an executive order to reduce prescription drug prices in the U.S. to match the levels of other high-income countries, which are often 30–80% lower. The policy, known as "most favored nation" pricing, aims to close the significant cost gap Americans face for medications compared to other nations.

Trump stated in a post on Truth Social that the executive order will ensure the U.S. pays the lowest prices globally for prescription drugs. He emphasized that this move would bring “fairness to America” by addressing the disproportionate burden on U.S. consumers, who often pay nearly three times more than residents of other developed nations.

The regulation is expected to expand beyond the limited scope of Medicare drug price negotiations introduced under the Inflation Reduction Act. Currently, Medicare has negotiated prices for 10 drugs, with plans to expand the list later this year.

While the pharmaceutical industry has expressed opposition, calling government price setting harmful to American patients, Trump’s previous attempt at international reference pricing was estimated to save taxpayers $85 billion over seven years, significantly reducing the annual $400 billion U.S. drug expenditure.

The executive order is set to reshape the pharmaceutical landscape, despite potential legal challenges similar to those faced during Trump’s first term.