In a bold policy move aimed at directly confronting the pharmaceutical industry, President Donald Trump announced Sunday he will sign a sweeping executive order to slash prescription drug prices across the United States. The order — set to be signed at 9:00 A.M. Monday — promises immediate relief to millions of Americans burdened by skyrocketing medication costs, with reductions ranging from 30% to a staggering 80%.
At the heart of the order is the institution of a Most Favored Nation (MFN) policy — a long-debated idea that would tie what the U.S. pays for certain drugs to the lowest price paid in any country around the world. As Trump framed it in his Sunday Truth Social post, “Our Country will finally be treated fairly,” adding that Americans would no longer foot the bill for inflated prices while other nations benefit from the same drugs at a fraction of the cost.
The MFN policy marks a seismic shift in U.S. pharmaceutical pricing, targeting a longstanding practice where American patients — especially seniors and those on fixed incomes — are charged exponentially more than consumers in Canada, Europe, or Asia for identical medications manufactured in the same facilities.
Trump’s promise to enforce fairness comes with a warning for global drug markets: “Drug prices will rise throughout the World,” he said, “but for the first time in many years… it will bring FAIRNESS TO AMERICA!”
The executive order builds on a series of reforms initiated last month. Under an earlier order, the Trump administration moved to:
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Standardize Medicare payments across treatment settings for critical drugs like chemotherapy agents — a move the White House claimed could save patients up to 60%.
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Cap insulin prices at just 3 cents per unit for uninsured or low-income Americans.
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Lower injectable epinephrine costs to $15, plus a minor administrative fee, making life-saving allergy treatments more accessible.
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Align Medicare prices for prescription drugs with the rates hospitals actually pay, which could trim costs by up to 35%.
These provisions aim to correct deeply rooted pricing discrepancies that have plagued American patients for decades.
The order also instructs the Department of Health and Human Services — now led by Robert F. Kennedy Jr. — to ramp up importation programs, allowing states to access lower-priced foreign medications. States like Florida have already explored such programs, and Trump’s executive action could accelerate those efforts, potentially saving millions in Medicaid and state-run health systems.
This is unconstitutional (the president can’t set prices by EO) and unworkable on its face (we’re suddenly gonna pay less for drugs than, like, Bangladesh?) but at least we get a 72 hour internet debate about why American consumers have to specially subsidize pharma R&D https://t.co/lfAEvh7wCo
— Derek Thompson (@DKThomp) May 12, 2025
Additionally, HHS is ordered to solicit public comment on the controversial Medicare Drug Price Negotiation Program — originally empowered under the Biden administration’s Inflation Reduction Act. Trump’s move keeps the negotiation program on the table but reorients it toward broader cost controls and national savings.
This is no symbolic gesture. Trump’s direct confrontation with Big Pharma — a historically powerful lobby with deep ties across both parties — signals a political realignment. “Campaign Contributions can do wonders, but not with me,” Trump declared. He acknowledged that Democrats had long championed lower drug prices, but claimed it took Republican leadership to finally act.
The economic stakes are massive. Drug prices rose over 15% between January 2022 and January 2023, with nearly half of all increases outpacing inflation. Average drug costs now sit near $600 per product. The White House projects that the MFN policy and associated reforms could save the U.S. trillions of dollars — a promise that, if delivered, would mark one of the most consequential healthcare shifts in modern history.
