Trump's Bold Move to Slash US Drug Prices

In a highly ambitious move, President Donald Trump has signed an executive order aimed at dramatically reducing the prices of prescription drugs in the United States. The order seeks to align U.S. drug prices with the lowest found globally through a 'most favored nation' policy. This approach pressures pharmaceutical companies to lower their prices, potentially reducing costs for American consumers by 30% to 80%.

Trump's policy aims to end the long-standing issue of Americans paying more for medications compared to other wealthy countries. This initiative challenges the pharmaceutical industry's influence and their pricing strategies, which have historically kept drug costs high in the U.S. The move has generated significant opposition from the industry, which fears reduced revenues and limited access to essential medicines.

The policy also proposes encouraging direct sales and imports of cheaper drugs, with the U.S. Department of Health and Human Services tasked to set clear price reduction targets. While the potential impact on the pharmaceutical sector is substantial, with companies like Pfizer, Merck, and Johnson & Johnson facing significant revenue losses, the effectiveness of the plan remains uncertain amid anticipated political and legal challenges.