Trump Signs Executive Order on Drug Prices

President Donald Trump has signed an executive order invoking a 'most favored nation' policy, directing drugmakers to reduce U.S. prescription drug prices to match those in the lowest-cost developed countries. The order gives pharmaceutical companies 30 days to voluntarily lower prices before potential regulatory actions, such as pegging prices to international rates or expanding drug imports, are considered. Trump claims this measure could reduce U.S. drug costs by up to 59% and end Americans subsidizing lower prices abroad. However, the order lacks clear legal authority for immediate implementation and omits more forceful steps previously threatened. Pharmaceutical industry groups warn the policy may harm innovation and investment, while investors responded positively due to doubts about the order's enforceability. Critics note similarities to a prior Trump initiative that was blocked in court and later rescinded, casting doubt on the order’s practical impact.