Mon May 12 19:51:12 UTC 2025: **Trump’s Executive Order Aims to Slash US Prescription Drug Prices**
Washington D.C. – President Trump signed an executive order Monday aimed at drastically reducing prescription drug prices in the United States, claiming it could lower costs by as much as 90 percent. The order targets pharmaceutical companies, which Trump accuses of “profiteering,” but places the blame for high US prices on foreign countries, alleging the US has been “subsidizing” lower drug prices elsewhere.
Trump’s plan involves negotiating lower prices with drug manufacturers, aiming to achieve price parity with nations like those in the European Union. He asserts that the US will “pay what Europe pays,” ending what he describes as a trade imbalance.
However, this approach has drawn criticism. Senator Bernie Sanders, a long-time advocate for lower drug prices, agrees that US prices are exorbitant but argues that the responsibility lies with the pharmaceutical industry’s high profits, not foreign countries. He states that the industry “ripped off the American people” by generating over $100 billion in profit last year.
The White House insists the administration will communicate price targets to manufacturers, leveraging the US’s position as the world’s largest drug purchaser. While pharmaceutical company stock prices rose following the announcement, experts express skepticism about the speed and magnitude of potential price drops. Health law expert Rachel Sachs notes that the plan relies heavily on voluntary price reductions from manufacturers, with potentially lengthy and uncertain alternative measures only enacted if voluntary reductions are insufficient. The long-term effectiveness of the executive order remains to be seen.
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