Trump Targets Sky-High Drug Prices with New Executive Order
President Donald Trump plans to sign an executive order targeting prescription drug prices, aligning U.S. costs with lower international rates. The initiative could cut drug prices by up to 59%, though specifics remain undisclosed. This move follows previous court-blocked attempts to lower U.S. drug pricing.
President Donald Trump is set to sign an executive order aiming to reduce prescription drug prices in the United States, attempting to match what other countries pay. Trump announced this potential price cut of up to 59% on social media. However, detailed specifics of this initiative remain undetermined.
The plan, which could go into effect after the signing event with U.S. Health Secretary Robert F. Kennedy Jr., is reminiscent of Trump's earlier, court-blocked attempts to manage drug costs during his first term. The U.S. currently has some of the highest drug prices globally, often nearly triple those in other developed nations.
The pharmaceuticals sector reacted with caution, as global drug stocks experienced a decline following Trump's announcement. The current approach contrasts with President Joe Biden's Inflation Reduction Act, which allows the U.S. government to negotiate drug prices for Medicare, albeit still at much higher rates compared to other high-income nations.
(With inputs from agencies.)
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