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Trump Signs Order to Tie US Drug Prices to Lowest Global Rates, Targets Pharma Profits
Charlie Kirk Staff
05/12/2025
The Trump administration is moving forward with a plan to link U.S. drug prices to those paid in other developed countries, aiming to cut costs for American patients and reduce profits in the pharmaceutical sector.
President Donald Trump on Monday signed an executive order that introduces what the White House calls a “most favored nations” approach to drug pricing. The move, he said, will end what he described as years of price gouging by major pharmaceutical companies, reports Fox News.
“The principle is simple – whatever the lowest price paid for a drug in other developed countries, that is the price that Americans will pay,” Trump said during a press event at the White House. “Some prescription drug and pharmaceutical prices will be reduced almost immediately by 50 to 80 to 90%.”
Trump criticized current pricing systems that he says have forced Americans to pay far more than citizens of other countries for the same medications. “We’re subsidizing others’ healthcare, the countries where they paid a small fraction of what for the same drug that what we pay many, many times more for and will no longer tolerate profiteering and price gouging from Big Pharma,” he said.
The White House stated the order will task the U.S. Trade Representative and Secretary of Commerce with pushing back against foreign practices that suppress drug prices abroad at the expense of higher costs in the U.S.
In addition, the Secretary of Health and Human Services will establish a system to allow American patients to purchase drugs directly from manufacturers at the same prices offered in countries with the lowest rates. If companies refuse to comply, the order instructs the department to implement rules enforcing these price standards and to consider “aggressive measures” to further drive down costs and combat anti-competitive behavior.
“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. “For years, pharmaceutical and drug companies have said that research and development costs were what they are, and for no reason whatsoever, they had to be borne by America alone. Not anymore, they don’t.”
Health and Human Services Secretary Robert F. Kennedy Jr. appeared alongside Trump and praised the decision.
“I never thought that this would happen in my lifetime,” Kennedy said. “I have a couple of kids who are Democrats, are big Bernie Sanders fans. And when I told them that this was going to happen, they had tears in their eyes. Because they thought, this is never going to happen.”
Trump also said Monday morning that Americans could see drug prices “cut by 59%.”
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