Trump Pressures Big Pharma to Slash Prices

_WHAT’S HAPPENING_

President Donald Trump signed an executive order Monday aimed at dramatically reducing prescription drug prices. He has promised cuts of 50-90 percent by forcing pharmaceutical companies to match the lowest prices paid in other developed countries, also known as the “most favored nation” rule.

This marks Trump's second attempt at this approach, after a similar 2020 effort was blocked by courts and later rescinded by the Biden administration.

_THE FACTS_

• Americans pay nearly 2.78 times more for medications than in comparable countries.

• The order gives federal agencies 30 days to start setting pricing targets for pharmaceutical companies.

• If companies refuse to lower prices, Trump is threatening regulatory actions and possibly revoking drug approvals.

• The Pharmaceutical Research and Manufacturers of America condemned the order, calling it a “Foreign First Pricing scheme” that is bad for Americans.

• Health Secretary Robert F. Kennedy suggested that, if European nations raised prices by 20 percent, it would greatly reduce US costs.

• The order directs the Department of Commerce and US Trade Representative Jamieson Greer to address "discriminatory" policies that lower prices abroad, but not in America.

• Progressive Rep. Ro Khanna (D-CA) announced that he would introduce the executive order “exactly as written” to become legislation.

• Sen. Rand Paul (KY) argues that the order introduces price controls, which could lead to shortages.

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