Overview

• Donald Trump has signed an executive order tying U.S. drug prices to the lowest global rates, aiming for reductions of 30–80%.
• Federal agencies, including HHS, FDA, and Commerce, are tasked with implementing the policy and setting price benchmarks within 30 days.
• The scope of the order remains unclear, with uncertainty over whether it applies solely to Medicare or all prescription drugs.
• Pharmaceutical companies warn that price controls could harm innovation and patient access, while European governments fear retaliatory price hikes.
• Trump criticized Europe for benefiting from lower drug prices at U.S. expense and hinted at potential trade measures, including tariffs, if resistance persists.