Trump Announces Executive Order to Cut Prescription Drug Prices by Up to 80%
The president claims the move will increase global costs to ensure equity for American consumers.
On December 5, 2025, President Donald Trump announced he would sign an executive order aimed at reducing prescription drug prices in the United States by between 30% and 80%.
In his statement on social media, Trump asserted that this initiative would lead to a corresponding rise in drug prices in other countries to ensure fairness for American consumers, stating, "America will finally be treated justly."
Trump described the forthcoming order as one of the most significant in U.S. history, emphasizing that it would result in substantial savings for American families.
He projected that the initiative would save the country "trillions of dollars" and reduce healthcare costs to unprecedented levels.
The president's announcement came just hours after he indicated he would deliver his most important message on the same platform.
In the days preceding his statement, Trump also hinted at the potential introduction of tariffs on pharmaceutical products within two weeks.
Reactions from the pharmaceutical sector were immediate, as industry lobbyists received indications from the White House regarding the order.
Some lobbyists noted that companies had anticipated an executive order focused primarily on Medicare rather than a broader application affecting all prescription drugs.
The pharmaceutical industry foresees that the new policy may extend to a wider range of medications beyond those currently subject to price negotiations under the Inflation Reduction Act initiated during President Joe Biden's administration.
This law has enabled Medicare to negotiate prices for ten drugs, with agreements set to take effect in the upcoming year, along with additional negotiations expected before year-end.
Alex Schriver, a spokesperson for the Pharmaceutical Research and Manufacturers of America (PhRMA), criticized the potential order, stating that government price-setting—regardless of its form—would harm American patients.
This announcement marks another attempt by Trump to link U.S. prescription drug prices to those in other countries.
During his previous term, a court blocked his proposal to implement an international price reference system.
In his statement on social media, Trump asserted that this initiative would lead to a corresponding rise in drug prices in other countries to ensure fairness for American consumers, stating, "America will finally be treated justly."
Trump described the forthcoming order as one of the most significant in U.S. history, emphasizing that it would result in substantial savings for American families.
He projected that the initiative would save the country "trillions of dollars" and reduce healthcare costs to unprecedented levels.
The president's announcement came just hours after he indicated he would deliver his most important message on the same platform.
In the days preceding his statement, Trump also hinted at the potential introduction of tariffs on pharmaceutical products within two weeks.
Reactions from the pharmaceutical sector were immediate, as industry lobbyists received indications from the White House regarding the order.
Some lobbyists noted that companies had anticipated an executive order focused primarily on Medicare rather than a broader application affecting all prescription drugs.
The pharmaceutical industry foresees that the new policy may extend to a wider range of medications beyond those currently subject to price negotiations under the Inflation Reduction Act initiated during President Joe Biden's administration.
This law has enabled Medicare to negotiate prices for ten drugs, with agreements set to take effect in the upcoming year, along with additional negotiations expected before year-end.
Alex Schriver, a spokesperson for the Pharmaceutical Research and Manufacturers of America (PhRMA), criticized the potential order, stating that government price-setting—regardless of its form—would harm American patients.
This announcement marks another attempt by Trump to link U.S. prescription drug prices to those in other countries.
During his previous term, a court blocked his proposal to implement an international price reference system.
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