Former U.S. President Donald Trump has announced he will sign “one of the most consequential executive orders” in American history at 9 a.m. on Monday (local time), aimed at slashing prescription drug and pharmaceutical prices across the United States by an estimated 30% to 80% almost immediately.
In a post made on his platform Truth Social, Trump stated the executive order would implement a “Most Favored Nation” policy, under which the U.S. would pay no more for prescription drugs than the lowest price charged in any country worldwide. He sharply criticized pharmaceutical companies for what he described as unjustified price gouging, suggesting that Americans have long been forced to subsidize R&D costs for the rest of the world.
“Campaign contributions can do wonders, but not with me, and not with the Republican Party,” Trump wrote.
“Prescription Drug and Pharmaceutical prices will be REDUCED… Our Country will finally be treated fairly, and our citizens’ healthcare costs will be reduced by numbers never even thought of before.”
A Transformative Healthcare Move
Trump emphasized that the order will:
- Reduce drug prices between 30% to 80%
- Equalize global prices to end the U.S.’s overpayment
- Introduce “fairness” into a system long considered exploitative
- Save trillions of dollars for U.S. taxpayers over time
Previous Action in April
In April 2025, Trump signed another executive order to standardize Medicare payments for cancer and other critical drug treatments, regardless of treatment setting. A White House fact sheet at the time noted:
- Up to 60% savings for patients on certain drugs
- Insulin reduced to 3 cents for low-income and uninsured patients
- Epinephrine injectors priced as low as $15, plus a small administrative fee
That order also backed:
- Drug importation programs to help states cut costs
- Better pricing deals for sickle cell medication through Medicaid
- Expanded Medicare Drug Price Negotiation in line with Biden-era Inflation Reduction Act provisions
Background: Spiraling Drug Prices
According to the U.S. Department of Health and Human Services, prescription drug prices soared by over 15% between January 2022 and January 2023, with the average price per drug reaching $590.
Trump’s executive order is seen as a direct challenge to entrenched pharmaceutical interests and a bid to reclaim momentum on healthcare affordability—a key concern for American voters heading into the 2024 election cycle.
Political Impact and Reactions Await
This executive action could:
- Pressure drug companies to renegotiate global pricing models
- Trigger legal or legislative pushback from industry lobbies
- Deepen the healthcare affordability debate among 2024 candidates
Key Takeaways:
- Trump signs a sweeping order at 9 a.m. Monday to cut U.S. drug prices by up to 80%.
- The “Most Favored Nation” pricing model ties U.S. drug prices to the global minimum.
- Trump criticizes pharma giants for unfair pricing and promises multi-trillion dollar taxpayer savings.
- Order builds on earlier efforts to cut costs on insulin, cancer drugs, and essential injectables.
- Comes amid record inflation in drug prices and growing public demand for reform.