US President Donald Trump has signed an executive order aimed at lowering prescription drug prices for Americans. The order gives drug manufacturers 30 days to reduce their prices to match those in other developed countries. If they don’t comply, the administration plans to impose tariffs on these companies. Trump stated that drug prices in the US are nearly three times higher than in other developed nations, and he aims to cut them by 59% to 90%. “Everyone should be treated equally, and everyone should pay the same price,” Trump said.
Background
The US has some of the highest prescription drug prices globally. Trump’s administration claims this is unfair to American consumers. During his presidency, Trump has been trying to fulfill his campaign promise to reduce everyday costs for Americans, including medication prices. A conversation with a friend reportedly inspired Trump’s latest move. The friend shared that he bought a weight-loss injection in London for $88, while the same medication costs $1,300 in the US.
Potential Consequences
If drug manufacturers fail to comply, the administration plans to take further action. This may include importing drugs from other developed countries and limiting exports. The Federal Trade Commission has been instructed to take a closer look at anti-competitive practices by drug companies. However, the Pharmaceutical Research and Manufacturers of America (PhRMA) trade group is opposing Trump’s move. Stephen Ubl, PhRMA’s president, argues that adopting foreign drug prices will harm American patients and workers. “It means fewer treatments and cures, and may jeopardize hundreds of billions of dollars in investments our member companies plan to make in America,” Ubl said.
The outcome of Trump’s executive order remains uncertain. Investors are skeptical about its enforceability, given that Trump’s previous attempts to lower drug prices were blocked in court. The source of this information is Reuters.