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President Donald Trump Monday revived the controversial policy that aspires Drug costs By linking the amount that the government pays for some medicines to reduce prices abroad.
Trump has signed an executive order, including several different actions to restore these efforts, known as the “most committed nation” policy. Trump did not refer to specific countries, but it signaled that it would be aimed at other developed countries because “there are some countries that need additional assistance, and that’s okay.”
“Basically what we do is alignment,” Trump said during a press -Monday press. “We are going to pay the lowest price in the world. We will receive the one who pays the lowest price, this is the price we are going to get.”
But the White House officials did not disclose what medicines the order will be applied. They stated that the announcement on Monday would be broader than a similar policy that Trump tried to promote during his first term, which was applied only to the Medicare drug.
Officials have added that the administration would have a special emphasis on drugs that have “the largest disparities and the largest costs” that can include popular weight loss and diabetes called GLP-1.
It is unclear how effective the costs for patients will be effective. In a report on social media on Monday, Trump said drug prices would be reduced by “59%, plus!”
But Trump claimed during the press media that drug prices could fall even more, from 59%to 80%, or “I suppose even 90%”.
The actions of American drug manufacturers were mixed on Monday. Shares Measure grew more than 4%while stock Pfizer and AMGEN rose more than 2%
President Donald Trump, which was joined by health and human services secretary Robert F. Kennedy -Jelling, performs during a press conference in the Roosevelt’s White House room on May 12, 2025 in Washington, Colombia District.
Andrew Harnica | Gets the image
Part of the order aims at the nation abroad, which have a great power to coordinate drug prices with pharmaceutical companies.
“From today, the United States will no longer subscribe to medical care to foreign countries that we have done,” said Trump, adding that the United States “no longer transfer the profit and price from a large pharmaceutical.”
He added that “these are really the countries that made Big Pharma do everything that, frankly, I’m not sure they really felt comfortable.”
He ordered the US and the Ministry of Commerce Department to stop the “unjustified and discriminatory policy” in foreign countries that “suppress” drug prices abroad, officials said.
“We will work to make sure the countries will not be unfair in their negotiations with pharmaceutical companies, right?” one official said. Narcotic manufacturers “constantly complain” that they are put “in an impossible situation when in these negotiations,” because these companies usually need to wander drug discounts with whole countries, the official added.
Unlike the United States, several foreign countries offer universal health care if the government is the only payer that gives it significant leverage or drug prices.
White House officials said they expect drug manufacturers to provide discounts to “answer” the actions that the Trump administration takes to resolve prices abroad.
Trump’s order also directs the secretary of the Ministry of Health and Human Services to encourage drug manufacturers to offer “the most supportive prices for national” for “sale of a direct consumer” of their medicines.
“We are going to cut intermediaries and promote the direct sale of drugs at the most beloved price of the nation directly an American citizen,” Trump said.
Within 30 days, the secretary will have to set clear goals to reduce prices in all US markets, officials say. This will be opened by the round of negotiations between the HHS and the pharmaceutical industry, officials said without presenting accurate details about the nature of these negotiations.
If “adequate progress” is not made to these price targets, HHS secretary Robert F. Kennedy -Juni will impose drug prices for drugs.
The order also directs the Office of Nutrition and Medicines to consider expanding imports from other developed countries outside Canada. Trump signed a separate executive order In April, directed to the food administration and medication to improve process With which states can apply to imports from Canada with less cost from Canada, among other actions intended to reduce drug prices.
The order of Monday is also sent by the Ministry of Justice and the Federal Trade Commission to aggressively perform “anti-component actions” that support prices in the United States high
The Department of Trade will also consider export restrictions that “will allow low prices abroad”.
Trump’s latest efforts to try to strengthen the US prescription prices that are average two -three times higher than they In other developed countries – up to 10 times more than in certain countries, reports RAND, an analytical center of state policy.
Order is a blow to the pharmaceutical industry, which is already planned for the planned tariffs by prescription medication. Drug manufacturers claim that the “most committed nation” policy will damage their profits and eventually their ability to research and develop new medicines.
White House representatives claim that pharmaceutical companies will continue to earn money after lowering prices if they realize that the United States is “just not going to pay for innovations” and if they increase the prices abroad to get additional income.
Drug manufacturers “must continue the transactions if they receive the financial reward of the commensurate value they provide for other countries, health systems,” one official said.
“Other countries must also pay research and development. This is in their favor,” Trump added on Monday.
Politics can help patients by reducing prescription costs, which is a problem for many Americans. More than three in four adults in the US say the cost of medicines is unavailable, according to KFF Poll Since 2022.
The industry also lobbied similar Trump’s plans during its first term. He tried Continue policy through In recent months this term but federal judge for stopped effort After the lawsuit from the pharmaceutical industry. Then Biden’s administration canceled this policy.
White House officials Originally pressed Congress -Republicans include the “most committed nation” provision in the main reconciliation bill they plan to accept in the coming months, but the policy would specifically send Medicaid drug costs, politico reports earlier this month. Several GOP members opposed this measure.
The largest trading group in the industry, phrma, According to estimates Trump Medicaid’s proposal can cost a drug drug manufacturer for $ 1 trillion over the decade.
Some health policy experts have stated that drug policy “most committed nation” may not be effective in reducing medicines.
For example, USC experts said Policy “cannot cancel the main economy of the world drug market” where 70% of pharmaceutical income are from the world from the US
“When faced with the choice between deep pricing in the US or the loss of poorly profitable foreign markets, we can expect many firms to get out of foreign markets at the earliest opportunities,” the report in April said.
This will allow Americans to pay the same amount for medicines, drug producers with less profits and future generations of patients with less innovations, they said.
“Overall, everyone loses,” the experts said.
Other experts have stated that another legal struggle against the pharmaceutical industry could prevent policy.
But even if the drug addiction pushes Trump’s executive order, his administration still has another tool for distracting drug prices: Medicare’s drug talks.
This is the key provision of the inflation decline that gives Medicare Powers to negotiate certain prescription prices with manufacturers for the first time in history.
Last month, Trump suggested changing this policy that has long been sought by addicts. Legislators on both sides of the passage can perceive the idea that proposes to change rules that distinguish small molecular drugs and biological medicines.
Last week, Trump said he plans to announce the tariffs for medicines imported in the US over the next two weeks. Those planned levies are aimed at increasing the production of internal drugs.
Drug manufacturers, including Eli Lily and PfizerThey repel these potential duties. Some companies questioned whether the tariffs needed, given that a few are already there announced new investments in the production and development of the United States Ever since Trump has taken office.
However, last week, Trump doubled his efforts to rethink drug production. He signed an executive order that streamlines the path for drug manufacturers to create new production sites.
Kaplan noted that even when drug addiction is pushing the executive order, the administration has another instrument at its disposal: Medicare’s pricing negotiations.