Overview

• President Trump sent letters to 17 pharmaceutical CEOs demanding U.S. drug prices be tied to the lowest rates paid in other developed nations
• He set a firm September 29 compliance deadline and threatened to deploy “every tool in our arsenal” to enforce price cuts
• No actual price reductions have occurred and the administration is still drafting rules to implement the policy
• Experts and fact-checkers refute claims of cuts above 100 percent as mathematically impossible and caution over hyperbolic rhetoric
• The plan mirrors a 2020 Most Favored Nation rule that was blocked by federal courts and rescinded in 2021, and industry groups warn that strict price caps could hamper drug research