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On May 12, 2025, President Donald Trump issued an executive order (EO) that aims to bring the prices Americans pay for prescription drugs in line with those paid by similar nations. According to a White House fact sheet, the prices Americans pay for brand-name drugs are more than three times the price other nations pay.
In April, President Trump signed another EO aimed at lowering prescription drug prices, which included a variety of directives related to the Medicare program and the pharmaceutical industry. The directives may not have an immediate impact on drug costs, as they will take time to implement.
Key Directives
The most recent EO outlines a number of actions intended to lower prescription drug prices in the United States. Among other things, the EO directs:
- The U.S. Trade Representative and Secretary of Commerce to take action to ensure foreign countries “… are not engaged in practices that purposefully and unfairly undercut market prices and drive price hikes” in the U.S.;
- The Trump administration to communicate price targets to pharmaceutical manufacturers; and...
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