Trump Plans Executive Order Linking U.S. Drug Prices to Lower International Rates

President Donald Trump announced plans to sign an executive order to reduce U.S. prescription drug prices by implementing a "Most Favored Nations" policy, which would peg U.S. drug prices to the lowest prices paid by other wealthy countries. The order is expected to primarily affect Medicare-covered drugs administered in a doctor's office, potentially leading to significant government savings and drug price reductions estimated between 30% and 80%. This initiative revives a similar policy from Trump's first term, which faced legal challenges and was ultimately blocked, with the Biden administration subsequently abandoning the effort. The pharmaceutical industry strongly opposes the policy, arguing that government price-setting harms American patients and that U.S. policymakers should address domestic system flaws instead. Though Trump touted the policy as potentially saving "trillions of dollars," experts question the feasibility and legal viability without congressional approval. Details on the scope of drugs covered and the exact implementation remain unclear, but the announcement has reignited debate over drug pricing reforms in the U.S.