Executive order to lower drug prices

executive order to lower drug prices
On May 11, President Trump announced the signing of an executive order aimed at drastically reducing drug prices in the United States. Under the “most favored nation” policy, the measure requires that Americans pay the same prices as those paid in developed countries that obtain medications at the lowest cost.

Trump argued that for decades, Americans have subsidized the healthcare of other nations by paying significantly higher prices for drugs. According to data cited by the former president, U.S. citizens pay up to 10 times more for some medications than patients in Europe or Australia. The order stipulates that if no progress is made within 30 days, mandatory price controls will be imposed.

The initiative also proposes eliminating middlemen from the distribution system and allowing direct-to-consumer sales. Additionally, it instructs trade representatives to pressure countries that, according to Trump, set artificially low prices and harm the U.S. pharmaceutical industry.

Although the goal of reducing costs is popular among many voters, the order has drawn strong criticism. Organizations such as BIO and PhRMA warn that it could discourage innovation, negatively impact small biotech companies, and cause the U.S. to lose its leadership in medical research. The Chamber of Commerce supports Trump’s diagnosis but rejects his approach, arguing that importing foreign price controls could limit access to treatments.

This shift in drug policy represents a pivotal moment in the debate over who should bear the cost of medical innovation: American citizens or the international community. Its implementation and consequences could have global repercussions for treatment access and the pharmaceutical industry.

22 May, 2025

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