President Trump is targeting drug prices in the United States Executive Order It aims to force pharmaceutical companies to match the lower prices paid by other developed countries.

If drugmakers do not voluntarily, the government will threaten to link the drug prices that government plans to pay directly with drug prices paid by other countries.

"Who pays the lowest price, that's the price we want," Trump said in a White House announcement.

He said drugmakers will have to lower their prices to the level paid by other developed countries, or face consequences. "If necessary, we will investigate pharmaceutical companies, especially those we are investigating countries that do so," he said. He also said that the U.S. market will be open to other countries.

Patients in the United States usually pay more for the medication than patients in other countries, mainly because government health care systems in other countries can set prices they are willing to pay. Overall, there is no price set in the United States, so pharmaceutical companies have more freedom to understand the market prices here.

"We have been subsidizing other countries around the world," Trump said at the White House on Monday.

Executive Order proposes multiple ways to reduce prices

The new executive order has multiple parts. It directed the U.S. Trade Representative and the Department of Commerce to take action against “unreasonable and discriminatory policies” to reduce drug prices abroad, although it is unclear what power the White House has in this regard. It also directs the Secretary of Health and Human Services Robert F. Kennedy Jr.

The order says that within 30 days, the government will offer drugmakers a price target, “providing prices for U.S. patients at a fairly developed country.” The order sets actions if drugmakers do not voluntarily comply, such as rules setting prices. It is not clear in the short term that the government must enforce the order.

Trump said he doesn't think the move will hurt pharmaceutical companies' ability to make money because they will put pressure on other countries to make up for the difference by raising prices. "Europe will have to pay more," Trump said. "The rest of the world will have to pay more, and the United States will have to pay less."

Trump scoffed at the latest “most popular country” price policy, “True Social Sunday Night,” prompting trade group Pharmaceutical Research and PHRMA manufacturers to violate executive orders, calling it “a bad deal for American patients.”

Steve UBL, President and CEO of PHRMA In a statement said: “To reduce the cost of Americans, we need to address the practical reasons why the U.S. is priced higher: foreign countries are not paying their fair share and middlemen and pushing prices for U.S. patients.” He added: “Government uses trade negotiations to force foreign governments to pay a fair share of drugs. U.S. patients should not pay for global innovation.”

The most popular country pricing was proposed before

Trump initially signed Executive Order In the most popular country, in late 2020, his first semester linked drug prices in Medicare Part B with drug prices in other countries. But the executive order faces a court challenge and was eventually revoked by the Biden administration. During the campaign last year, Trump Say he will recover The most popular national executive order has been the most popular since 2020, but videos about the order disappeared on Trump's 2024 campaign website.

Under a new mandate granted by the Inflation Reduction Act, Medicare began negotiating drug prices for the first time during the Biden administration. New lower Medicare prices for the top 10 drugs won't take effect until January 2026, but Discount range From 79% of the diabetes drug Januvia to 38% of the blood cancer drug imbruvica. Now, the Trump administration is The second batch of negotiations Prices of 15 drugs under the law.

exist The White House announcement of Medicare and Medicaid Service Center under Trump, Dr. Mehmet Oz pointed out that even the lower negotiated Medicare prices are higher than what Europeans who buy the same product pay. "We pay three times the amount of time other countries pay. That doesn't make any sense to the system."

Oz said the new executive order will further reduce these prices.