Trump Targets Big Pharma with Global Price Match Order

U.S. President Donald Trump on Monday signed a sweeping executive order aimed at reducing prescription drug costs by aligning them with the prices paid in other countries. The order sets a 30-day deadline for pharmaceutical companies to meet targeted price reductions, warning that additional measures will follow if “meaningful progress” is not achieved.

While the directive initially sparked concern, market analysts, investors, and industry experts later noted that the order was less severe than anticipated. Shares of major drug-makers, which had dipped due to fears surrounding a potential “most favored nation” pricing model, rebounded after the announcement.

During a press briefing, Trump emphasized the need for pricing parity between the U.S. and other developed nations, where prescription drugs often cost significantly less. He cited potential price reductions ranging from 59% to 90% and threatened to impose tariffs on pharmaceutical imports if domestic prices remain disproportionately high.

“Everyone should be paying the same price,” Trump stated, highlighting the disparity in global drug pricing, with the U.S. frequently paying nearly three times more than other countries.

The new order revives Trump’s earlier efforts during his first term to tackle high drug costs, attempts that were previously blocked by the courts. If pharmaceutical companies fail to meet the new pricing goals, the administration is prepared to implement formal regulations, explore options such as importing drugs from other advanced economies, and consider limiting exports, according to the order.

Additionally, the directive calls on federal agencies to explore the creation of direct-to-consumer programs that would offer medications at internationally benchmarked prices.