Overview

• President Trump signed an executive order on May 12, 2025, aiming to reduce U.S. prescription drug prices by 30% to 80% through international price benchmarking.
• The policy mandates that the United States pay no more than the lowest drug prices globally, but the White House has not provided specifics on enforcement or timelines.
• Pharmaceutical industry groups, including PhRMA, have criticized the plan, arguing it could harm American patients and reduce investment in innovation.
• Trump predicts that drug prices will rise in other countries as manufacturers adjust to offset reduced U.S. revenues, a claim that has raised concerns abroad.
• Stakeholders are awaiting further guidance on provisions such as Medicare negotiations and the potential importation of cheaper drugs from other countries.