Overview

• During a July 22 reception with Congress members, President Trump vowed to slash U.S. drug prices by as much as 1,400 percent, far exceeding conventional reduction targets
• He threatened to bar European automakers such as Mercedes, BMW and Volkswagen from U.S. sales if European governments refuse to raise their drug prices
• The administration has drafted enforcement regulations to apply Most-Favored-Nation price caps to Medicare and Medicaid within 30 days of issuing target prices
• Industry groups and legal experts warn that the executive orders exceed presidential authority and have pledged lawsuits to block implementation
• Social media users and commentators mocked Trump’s math, noting that reducing prices by more than 100 percent would require drugmakers to pay Americans to take medication