May 12, 2025 -- U.S. President Donald Trump on Monday signed a sweeping executive order promising to target "unreasonable or discriminatory" practices by foreign countries that result in Americans paying more for prescription drugs. "Starting today, the United States will no longer subsidize foreign - country health care, and that's what we're doing," Trump said before signing the executive order, claiming that it could reduce drug prices by up to 90%.
In addition, the president said that drug - makers must start offering American patients the lowest prices paid for drugs in peer countries, the so - called "most - favored - nation" prices, or face consequences. He directed the Department of Health and Human Services to set price targets within 30 days. "Large pharmaceutical companies can either voluntarily abide by this principle, or we will use the power of the federal government to ensure that we pay the same price as other countries, and accelerate the implementation of price caps and cuts." However, it is not clear whether Trump has the legal authority to require specific drug prices, especially in the private market.
The executive order also outlines the possible consequences if drug - makers fail to make significant progress in reducing drug prices, including: directing HHS to develop policy - implementation rules, expanding drug imports, reviewing drug exports, and requiring the U.S. Food and Drug Administration (FDA) to modify or revoke approvals for certain drugs that are "potentially unsafe, ineffective, or misbranded".
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