Trump's Bold Move: Lowering U.S. Drug Prices to Match Global Standards

In a sweeping move, President Donald Trump signed an executive order on Monday targeting drug prices in the United States, urging alignment with international costs. Analysts suggest the ambitious plan, which includes specific price targets for pharmaceutical companies, might prove challenging to implement effectively.

The order outlines the government's intent to impose tariffs on pharmaceutical companies should they fail to meet designated price goals in line with other nations within six months. This initiative is part of Trump's broader effort to lower inflation and reduce costs of essentials, fulfilling a key campaign promise.

Despite initial investor skepticism, major drugmaker stocks rebounded on Monday. The order also directs the FTC to examine anti-competitive practices in the drug industry, though legal experts caution that the order may face judicial hurdles, especially concerning drug importation.

(With inputs from agencies.)