President Donald Trump announced he will sign an executive order mandating that Americans pay no more for select prescription drugs than citizens in countries with the lowest prices worldwide—a policy he dubbed the “Most Favored Nation” approach.
“For years,” Trump wrote on Truth Social, “all of these costs were, and would be, for no reason whatsoever, borne by the ‘suckers’ of America, ALONE.’”
The order, expected Monday morning, threatens to overturn longstanding industry pricing models that have led to the US paying significantly more for the same medications compared to Japan and China.
For example, a three-week dose of Merck & Co.’s Keytruda costs $11,795 in the US, but just $2,941 in Japan. Similarly, Novo Nordisk’s Ozempic is $998 per 2mg injection in the US, yet just $76 in Japan and $58 in China, according to Bloomberg data.
Trump’s plan would initially apply to drugs administered in doctors’ offices under Medicare Part B—such as cancer infusions or specialty injectables—and could reduce prices by 30% to 80%, he claimed.
“Our Country will finally be treated fairly,” Trump declared. “Our citizens’ Healthcare Costs will be reduced by numbers never even thought of before.”
Legal hurdles remain as well—Trump’s similar 2020 initiative was blocked in court, and the Biden administration chose not to revive it, instead focusing on the Inflation Reduction Act’s limited price negotiations.
Trump, who once accused pharma giants of “getting away with murder,” framed the US as having “embarrassingly” subsidized global R&D at American patients’ expense. He lashed out at the industry’s lobbying clout, saying: “Campaign Contributions can do wonders, but not with me, and not with the Republican Party.”
If implemented, the policy would mark one of the most aggressive US interventions in drug pricing history and signal a pivot in conservative health policy traditionally averse to price controls. It also risks sparking international backlash if drugmakers raise prices elsewhere to preserve profit margins—a possibility Trump all but welcomed in his pledge to “bring FAIRNESS TO AMERICA.”
Information for this briefing was found via Bloomberg, AP News, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
