Trump to Sign Executive Order Slashing Drug Prices by Up to 80% in "Most Favored Nation" Push

     WASHINGTON, May 11, 2025 – President Donald Trump announced Sunday that he will sign an executive order on Monday aimed at dramatically reducing prescription drug prices in the United States by tying them to the lowest prices paid by other wealthy nations. The move revives his controversial "most favored nation" (MFN) policy from his first term, with Trump claiming Americans could see drug costs drop by 30% to 80% "almost immediately."

     The executive order will institute a "most favored nation" pricing policy, requiring Medicare and potentially other government programs to pay no more for certain prescription drugs than the lowest price paid by any comparable country. While the full details remain unclear, industry sources expect the order to cover a broader range of drugs than the ten currently subject to Medicare negotiations under the Biden-era Inflation Reduction Act. Trump asserts the policy will deliver savings of up to 80% for American consumers and "save trillions of dollars" for the nation, addressing a long-standing disparity that sees U.S. patients paying up to three times more for the same medications as patients abroad. The Department of Health and Human Services is directed to take steps to align Medicare payments with the lowest international prices and expand access to discounted drugs for low-income and uninsured patients.

    The United States has historically paid the highest prescription drug prices in the world, with some medications costing five to ten times more than in other developed countries. Trump previously attempted to implement an MFN policy in 2020, but it was blocked by federal courts and later rescinded by President Joe Biden. The new order is expected to be broader and more aggressive in scope.

     Trump's announcement comes amid renewed debate over drug pricing, with both major parties seeking ways to curb costs for consumers. The pharmaceutical industry has voiced strong opposition, warning that such measures could limit access to certain drugs and potentially lead to shortages, especially if tariffs on pharmaceutical imports are also imposed as part of the administration's broader trade agenda.

     Trump framed the move as a long-overdue correction to what he described as years of unfair pricing, stating, "Our Country will finally be treated fairly, and our citizens’ healthcare costs will be reduced by numbers never even thought of before." He also criticized pharmaceutical companies for shifting research and development costs onto American consumers.

     The executive order is set to be signed at the White House at 9:00 a.m. Monday. While supporters hail the measure as a bold step to make healthcare more affordable, critics caution that the policy's effectiveness and potential unintended consequences will depend on its precise implementation and the response from drug manufacturers and global markets.

    Key questions remain about the scope of coverage, such as whether the policy will apply only to Medicare or extend to Medicaid and private insurers. Pharmaceutical companies are expected to challenge the order, potentially leading to legal battles similar to those seen in 2020. Experts also warn that while prices may fall, access to certain drugs could be restricted if manufacturers refuse to supply them at lower prices.

     As the executive order is signed and details emerge, the impact on drug prices, patient access, and the broader healthcare system will be closely watched by policymakers, industry stakeholders, and millions of Americans struggling with high medication costs