Trump’s new Executive Order aims to slash U.S. drug prices by matching them to lower international rates—after a friend’s shocking pharmacy bill triggered action.
At a Glance
- Trump signs Executive Order to match U.S. drug prices with global rates
- Prescription drugs in U.S. cost nearly 3 times more than in other nations
- Trump cites friend’s $1,300 vs. $88 overseas price as tipping point
- “Most-Favored-Nation” pricing strategy could cut costs up to 90%
- Calls for overhaul of U.S. drug laws and pharmacy benefit managers
A Price Gap Too Big to Ignore
A personal call from a friend jolted President Donald Trump into action. The friend, recently prescribed a weight-loss medication, paid just $88 in London for the same drug that cost him $1,300 in New York. “Same company, same plant, same everything,” Trump emphasized, describing the call that ultimately fueled his latest executive order targeting drug pricing abuse.
The order directs U.S. officials to combat unfair foreign pricing by ensuring Americans pay no more than other countries. This “Most-Favored-Nation” policy aligns U.S. drug costs with the lowest international benchmarks, a radical shift from the market-driven pricing that has long benefited pharmaceutical giants.
Watch a report: Trump Targets Sky-High Drug Costs.
While critics warn the policy may reduce drug innovation, supporters argue that a 90% price reduction could save lives and rein in rampant healthcare inflation.
Breaking the Pharma Monopoly
U.S. drug prices are, on average, 2.78 times higher than in 33 peer countries, according to RAND Corporation data. Trump’s new directive hits back against foreign governments that cap drug costs while letting U.S. consumers foot the global bill.
The executive order also scrutinizes pharmacy benefit managers, or PBMs, often blamed for inflating retail drug prices through rebates and opaque contracts. Trump labeled current drug laws as “screwed up,” urging reforms that allow consumers to buy directly from manufacturers.
Advocates say these changes would restructure the prescription market, forcing Big Pharma to justify costs and making lifesaving medications more accessible to millions.
From Anecdote to Action
Trump’s anecdote-heavy rollout, featuring his friend’s shock at U.S. sticker prices, delivered a potent message: American patients are being ripped off. “He didn’t understand why… and now he understands why,” Trump quipped, referring to the friend who watched the announcement “holding his breath.”
Despite pushback from pharmaceutical lobbyists, the policy taps into bipartisan outrage over drug pricing. With mid-size countries negotiating far better rates, many Americans view domestic prices as unjustifiable and overdue for disruption.
If the Most-Favored-Nation pricing strategy survives political and legal scrutiny, it could redefine the pharmaceutical landscape—turning one man’s $1,300 receipt into the catalyst for nationwide change.
