Overview

• President Donald Trump will sign an executive order at 9:00 AM EDT on May 12, 2025, to align U.S. prescription drug prices with the lowest international rates.
• The administration predicts price reductions of 30–80% could take effect almost immediately, though specifics on enforcement mechanisms have not been disclosed.
• This move builds on an April directive that included measures like improved Medicare negotiations and direct drug imports from lower-cost countries.
• The U.S. currently pays 2.5 times more for prescription drugs than countries like France, according to a Rand Corporation study.
• Pharmaceutical industry resistance and potential global price shifts are anticipated challenges to the policy’s implementation.