Trump Signs Executive Order Targeting US Drug Prices Amid Skepticism

President Donald Trump signed an executive order aimed at lowering U.S. prescription drug prices by linking them to the lower prices paid in other high-income countries, a policy referred to as the 'most favored nations' approach. The order directs agencies to address unfair foreign pricing practices and encourages direct-to-consumer drug sales to reduce costs, but it lacks clear enforcement mechanisms, making immediate price reductions uncertain. Despite Trump's promises of significant savings, experts and industry groups express skepticism about the policy's feasibility and anticipate legal challenges from pharmaceutical companies. The administration plans to identify targeted drugs within 30 days and may propose rulemaking if companies fail to comply, though the legal authority for unilateral actions is unclear. Pharmaceutical stocks initially dipped but later rose as investors noted the plan's limited immediate impact and lack of mandatory pricing cuts. The order also highlights Trump's stance that other countries negotiate low drug prices at the expense of U.S. patients, seeking to compel drugmakers to offer the U.S. prices as low as those paid by wealthier nations abroad.