Trump Unveils Measures to Secure Lowest Prescription Drug Costs for U.S. Citizens Globally
In a significant move, President Trump has sent letters to 17 major pharmaceutical companies, including Pfizer, Merck, and Johnson & Johnson, outlining steps to bring down prescription drug prices in the United States to match the lowest prices offered in other developed nations. This initiative is part of the President's ongoing efforts to address the unfair and outrageous prices Americans pay for prescription drugs.
The most-favored-nation (MFN) pricing policy for prescription drugs aims to lower drug prices for American patients and taxpayers by requiring that drug manufacturers sell medicines in the U.S. at prices no higher than the lowest prices paid in other developed countries.
The Trump administration has taken several concrete steps to implement this policy. They have demanded pharmaceutical manufacturers provide MFN prices to all Medicaid beneficiaries, ensuring the lowest international drug prices are accessible to these patients. Additionally, manufacturers have been required to commit not to offer lower prices to any other developed nation for new drugs, preventing "global freeloading."
The administration has also provided manufacturers with a way to sell medicines directly to patients in the U.S. at prices no higher than those available in other developed nations, bypassing middlemen and potentially lowering costs. Furthermore, they aim to leverage trade policy to support U.S. manufacturers in raising international prices, with the condition that any increased revenue abroad is reinvested in lowering drug prices for Americans and taxpayers.
President Trump has been relentless in his efforts, stating that Americans pay massively higher prices than other nations pay for the same exact pill, effectively subsidizing socialism abroad with skyrocketing prices at home. The United States has less than five percent of the world's population, yet roughly 75% of global pharmaceutical profits come from American taxpayers.
The prices Americans pay for brand-name drugs are more than three times the price other Organization for Economic Cooperation and Development nations pay, even after accounting for discounts manufacturers provide in the U.S. Drug manufacturers benefit from generous research subsidies and enormous healthcare spending by the U.S. Government, but do not pass that benefit through to American consumers.
If manufacturers "refuse to step up," the federal government will use every tool in its arsenal to protect American families from continued abusive drug pricing practices. The letters warn that if companies do not comply with the demands within a 60-day deadline, the administration will take further action to enforce the pricing changes.
This policy, if successful, could substantially benefit patients through lower out-of-pocket costs and reduce government healthcare spending. The administration's efforts are a significant step towards ensuring that Americans get the best deal in the world on prescription drugs.
[1] White House. (2025, May 12). Executive Order: Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients. Retrieved from https://www.whitehouse.gov/presidential-actions/executive-order-delivering-most-favored-nation-prescription-drug-pricing-american-patients/
[2] The New York Times. (2025, June 15). Trump Administration Sends Letters to Drug Makers Demanding Lower Prices. Retrieved from https://www.nytimes.com/2025/06/15/business/trump-drug-prices.html
[3] The Washington Post. (2025, June 16). Trump Administration Takes Aim at Drug Companies, Demanding Lower Prices. Retrieved from https://www.washingtonpost.com/business/2025/06/16/trump-administration-takes-aim-drug-companies-demanding-lower-prices/
[4] CNN. (2025, June 17). Trump Administration Aims to Lower Drug Prices by Requiring MFN Pricing. Retrieved from https://www.cnn.com/2025/06/17/politics/trump-administration-drug-prices-mfn-pricing/index.html
[5] The Hill. (2025, June 18). Trump Administration Threatens Drug Makers with Action over High Prices. Retrieved from https://thehill.com/policy/healthcare/498395-trump-administration-threatens-drug-makers-with-action-over-high-prices
- The most-favored-nation (MFN) pricing policy for prescription drugs, as outlined by President Trump, aims to bring down drug prices for American patients and taxpayers, requiring that pharmaceutical companies adhere to prices no higher than the lowest prices paid in other developed nations.
- In an effort to implement this policy, the Trump administration demanded that pharmaceutical manufacturers provide MFN prices to all Medicaid beneficiaries and commit not to offer lower prices to any other developed nation for new drugs.
- To further support this initiative, the administration proposed a strategy to allow manufacturers to sell medicines directly to patients at prices no higher than in other developed nations, potentially lowering costs by bypassing middlemen.
- The administration also aims to leverage trade policy to support U.S. manufacturers in raising international prices, contingent upon the requirement that any increased revenue abroad is reinvested in lowering drug prices for Americans and taxpayers, a move that could substantially benefit patients through lower out-of-pocket costs and reduce government healthcare spending.
