On May 11, 2025, former U.S. President Donald Trump announced plans to sign an executive order aimed at significantly reducing prescription drug prices by aligning them with the lowest prices paid in other high-income countries. This "most favored nation" pricing policy is intended to ensure that Americans pay prices 30% to 80% lower, similar to what other developed nations spend on medications.

The executive order is scheduled to be signed at 9 a.m. Eastern Time on Monday. Trump emphasized that this move would ensure fair treatment for the U.S. and significantly cut healthcare expenses for American citizens, potentially saving the country trillions of dollars.

This policy seeks to align U.S. drug prices with those of other countries, where national health systems often pay less for medications. Trump had proposed this strategy during his first presidential term, but it was previously blocked by a federal court after pharmaceutical companies challenged it.

The pharmaceutical industry, represented by the Pharmaceutical Research and Manufacturers of America, opposes government price-setting measures, arguing they could harm patient access. However, Trump reiterated his stance against pharmaceutical lobbying and pledged to prioritize fairness and cost reductions for Americans.

While the executive order's full impact remains to be seen, it represents a significant step toward addressing the high cost of prescription drugs in the United States. The administration's approach may face legal challenges and opposition from pharmaceutical companies concerned about its impact on drug development.