WASHINGTON — President Donald Trump announced he will sign an executive order on May 12 aimed at drastically lowering prescription drug prices by tying the cost of certain medications to the lowest prices paid globally — a move he says will bring immediate relief to American consumers.
The order, set to be signed at 9 a.m. ET from the White House, will implement a “most favored nation” pricing policy for drugs covered by Medicare. The approach requires that the U.S. pay no more than the lowest price charged in other comparable nations for the same medications.
“I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World,” Trump wrote in a post on Truth Social. “Our Country will finally be treated fairly, and our citizens’ Healthcare Costs will be reduced by numbers never even thought of before.”
Trump claimed the policy will lead to a drop in pharmaceutical and prescription drug costs “almost immediately,” with reductions ranging from 30% to as much as 80%. The move reflects a long-standing campaign promise to confront high drug prices and reduce the burden on American seniors and taxpayers.
The executive order marks a major step in the Trump administration’s strategy to reform how drug prices are set in the U.S., where pharmaceutical costs far exceed those in other industrialized nations. Previous efforts to push through similar reforms faced strong opposition from the pharmaceutical industry and were entangled in legal and political challenges.
While the specifics of the drugs impacted by the order have not yet been disclosed, the policy is expected to primarily target high-cost medications reimbursed through Medicare Part B.
The announcement is likely to trigger fierce debate on Capitol Hill and among health policy experts, with supporters touting it as a necessary step toward price parity and critics warning of potential unintended consequences, including reduced innovation and access to new therapies.
As the 2025 election season intensifies, Trump’s move is likely to resonate with voters frustrated by the rising cost of living and long-standing concerns about affordability in the healthcare system.
