On Thursday, President Trump expressed confidence that his recent “most preferred nation” executive order could lead to a dramatic drop in drug prices, stating they might “fall like a rock” within weeks. He emphasized that the expected savings would be “immeasurable.”
In a briefing that followed the release of the Maha Committee’s child health report, Trump highlighted his efforts to reduce prescription drug costs through the executive order he signed.
He mentioned that the U.S. faces a more “vicious” scenario regarding drug pricing than other countries and suggested that Americans are effectively subsidizing lower drug prices abroad.
“We aim to cut drug costs by as much as 89% in some instances, and while 50% might seem low, it’s really not a great figure,” Trump stated. “The impact will be significant for programs like Medicaid and Medicare, which is incredibly encouraging.”
The “most preferred country” initiative outlined in his executive order intends to ensure that the U.S. pays the lowest price for prescription drugs available worldwide.
According to White House officials, the executive order instructs the Commerce Department and U.S. Trade Representative Jamieson Greer to take appropriate measures against what they term “irrational and discriminatory” policies in other nations that affect drug pricing.
It also tasks Health and Human Services Secretary Robert F. Kennedy Jr. with establishing a “clear target” for reducing drug prices within 30 days, granting him the ability to enforce pricing similar to “most preferred countries” if negotiations with pharmaceutical firms do not yield results.
“In just a few weeks, we can really drive down drug costs,” Trump asserted on Thursday.
A number of pharmaceutical and biomedical organizations, including the Biotechnology Innovation Organization (BIO), have criticized these orders. This group had previously taken legal action against the Trump administration in 2020 when he attempted a similar move, successfully preventing its implementation.
“The most advantageous country concept is fundamentally flawed and threatens to undermine our country’s small and medium biotech firms, which are essential for U.S. medical innovation and leadership in biotechnology,” they stated.
