President Trump’s new executive order gives drugmakers 30 days to cut prices or face sweeping federal pricing reforms, with support from Dr. Mehmet Oz and opposition from the pharmaceutical industry.
At a Glance
- The order mandates drugmakers to cut prices within 30 days
- It proposes tying U.S. drug prices to international benchmarks
- Medicare and Medicaid drug pricing will be directly impacted
- Pharma industry warns of reduced research and foreign dependence
- Dr. Oz endorses the plan as a step toward affordable healthcare
A New Prescription for Drug Pricing
In a bold move targeting prescription costs, President Trump signed an executive order demanding drugmakers slash prices within 30 days or face federally enforced caps. The order, anchored in the “most favored nation” pricing model, aims to align American drug costs with those paid in Europe and other developed countries—an aggressive step in overhauling U.S. pharmaceutical pricing.
Dr. Mehmet Oz, a longtime medical advocate and former Senate candidate, praised the initiative for challenging industry norms and advancing affordability. “We’re going to equalize,” Trump declared at the signing. “We’re all going to pay the same.”
Watch a report: Trump’s Drug Price Showdown Explained.
The Department of Health and Human Services is tasked with delivering detailed price targets by June, with the changes most immediately affecting Medicare and Medicaid—systems covering roughly 150 million Americans. Whether private insurers follow remains to be seen.
Industry Pushback and Economic Tensions
The pharmaceutical lobby has slammed the policy, calling it a reckless importation of foreign pricing models. Stephen J. Ubl, CEO of PhRMA, warned that “importing foreign prices will cut billions of dollars from Medicare with no guarantee that it helps patients,” and could cripple U.S.-based research efforts. He further cautioned the move could increase reliance on Chinese drug manufacturing.
While the policy’s full implementation remains murky—relying partly on voluntary compliance—analysts agree its symbolism is clear: the U.S. government is prepared to force a change in drug pricing power dynamics. Still, experts like Rachel Sachs caution that real savings could be years away, contingent on litigation and bureaucratic hurdles.
A Defining Shift in U.S. Healthcare
By tying prices to global standards, Trump’s strategy repositions the U.S. as an equal—not a subsidizer—in global pharmaceutical markets. “We’ve been subsidizing other countries,” Trump argued, pointing out that American consumers often pay multiples of what patients abroad do for the same medications.
The executive order has already shaken investor confidence, with shares of Merck and Pfizer briefly dipping before rebounding—reflecting both skepticism and uncertainty over the order’s longevity under future administrations.
Dr. Oz’s backing underscores the political momentum behind the move. While industry groups brace for legal fights, the administration insists the effort will proceed, even if enforcement mechanisms evolve. In a polarized healthcare debate, Trump’s order has turned prescription drug pricing into a defining 2025 battleground.
