Trump Signs Controversial Drug Pricing Order Amid Industry Backlash.
In a move riddled with political theatrics and questionable legality, Donald Trump has signed an executive order aiming to slash U.S. prescription drug prices by forcing pharmaceutical companies to match the lowest prices offered in other countries. The so-called “most favored nation” policy has been billed by the president as a way to end what he deems “global freeloading.” However, critics argue it’s more of a desperate attempt to score points with voters than a viable, well-structured health policy.
Speaking from the White House, Trump accused pharmaceutical companies of “redistribution” tactics, claiming they’ve used U.S. patients to subsidize cheaper drugs abroad. “Even though the United States is home to only 4% of the world’s population, pharmaceutical companies make more than two-thirds of their profits in America,” Trump said, ignoring the complexity of global drug pricing structures and the potential fallout of such a heavy-handed policy.
Standing alongside controversial health secretary Robert F. Kennedy Jr. and Medicare administrator Mehmet Oz—two figures with histories of promoting dubious medical claims—Trump claimed the order would cut U.S. drug costs by “30% to 80% almost immediately.” Examples included breast cancer drugs costing $16,000 in the U.S. versus $1,600 in Australia, and the diabetes drug Ozempic being sold for ten times more in the U.S. than elsewhere. But experts say the numbers are misleading and the order lacks the regulatory teeth to deliver on such sweeping promises.
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The executive order revives a failed 2020 policy from Trump’s first term that tried to tie Medicare reimbursement rates for 50 drugs to the lowest prices paid in certain foreign markets. A federal judge blocked the initiative back then, citing the administration’s failure to follow public comment procedures required by law. The Biden administration later scrapped the policy under pressure from hospitals and the pharmaceutical industry, labeling it both unworkable and legally frail.
Despite this history, Trump is pushing the same plan again—this time without substantial revisions. Health policy experts have voiced support in theory for international pricing benchmarks, but few believe Trump’s version will survive the inevitable legal challenges. The pharmaceutical lobby is expected to push back hard, and lawsuits are likely imminent.
Unsurprisingly, global drug markets reacted to the announcement. Asian and European pharmaceutical stocks dipped early Monday before regaining ground by market close. Meanwhile, U.S. pharmaceutical shares rose, possibly due to skepticism that Trump’s order will amount to any real change.
Trump dismissed industry concerns that lower prices could lead to reduced access to life-saving medications or limit investment in drug research and development. “They did one of the greatest jobs in history for their company, convincing people this was a fair system,” he said, brushing off long-standing arguments from researchers and economists.
Robert F. Kennedy Jr., using the moment to plug the policy as a progressive win, bizarrely invoked his children’s supposed approval of the plan, stating, “They had tears in their eyes.” Such tone-deaf remarks—especially amid concerns over Trump’s political use of executive authority—further inflamed critics who say the announcement is more about optics than outcomes.
The U.S. currently pays nearly three times more for brand-name drugs than other high-income countries, according to a Rand Corporation study. Peer nations often use centralized negotiations and universal healthcare coverage to gain leverage over pharmaceutical companies, something the fragmented U.S. system can’t replicate under current laws.
And yet, Trump insists his executive order will level the playing field overnight—despite no new legislation, no congressional support, and a legal precedent already ruling against such a policy.
Trump’s renewed push for drug pricing reform feels less like meaningful policy and more like political posturing. The “most favored nation” order is legally fragile, economically simplistic, and unlikely to hold up under judicial scrutiny—just as it didn’t the first time. Surrounded by fringe figures like Kennedy and Oz, Trump is once again making grand promises with little substance. While drug price reform is desperately needed in the U.S., it deserves a thoughtful, bipartisan approach—not a publicity stunt from a billionaire president chasing relevance.
