Trump's Bold Move to Equalize U.S. Drug Prices Faces Skepticism

President Donald Trump has signed an executive order demanding drugmakers reduce the prices of their medicines in the U.S. to match those in other countries, a move that experts argue presents significant implementation challenges. The order sets price targets for the next 30 days, with promises of further government intervention if companies fail to make 'significant progress' within six months.

Speaking at a press conference, Trump warned of possible tariffs on companies if American prices do not equalize with those abroad. The United States currently pays some of the steepest prices for prescription drugs globally. This attempt follows a stalled effort in Trump's first term, hindered by court rulings.

The order, partly inspired by a personal anecdote about price disparities, also calls on the U.S. Federal Trade Commission to counteract anti-competitive practices among pharmaceutical firms. However, legal experts suggest that certain measures, like importing drugs from other developed nations, face potential legal hurdles. Despite investor uncertainty, shares of major drug companies showed resilience following the announcement.

(With inputs from agencies.)