May 12, US President Trump signed a major executive order aimed at significantly reducing prescription drug spending for American citizens. He announced the implementation of the so-called "Most Favored Nation Policy" (MFN Policy), meaning that the US government will only pay the same price as the lowest global drug pricing country to purchase medications.

Trump emphasized at the White House that this measure was "the right thing to do," and he would not let himself or the Republican Party be bought and controlled by "Big Pharma" through campaign contributions.

He pointed out that the fundamental reason why drug prices in the United States are much higher than those in other countries is that foreign governments force pharmaceutical companies to sell drugs at low prices overseas through price pressure, while the US has been treated as the "sucker." "Other countries buy the same drug for a fraction of what we pay, so why should Americans be the fools?" he questioned.

Trump specifically mentioned the currently popular GLP-1 class weight-loss drugs, calling them "slimming needles," such as Ozempic and Wegovy. He pointed out that the price of these drugs in the United States is ten times higher than in other developed countries. For example, one of his obese friends only spent $88 on this drug in London, while in New York it cost $1,300.

Trump harshly criticized the Democrats for supporting the pharmaceutical industry and also referred to this price gap as a "shame" for the nation.

In the presence of officials including Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz, Trump officially signed the executive order at the White House and announced that the policy would take effect immediately.

"Starting today, the United States will no longer subsidize the healthcare costs of foreigners. We have been doing this invisibly all along," Trump stated. "Other countries spend only a fraction of what we do but enjoy the same drugs."

He estimated that the policy could reduce the prices of some drugs by 50% to 80%, with some potentially even dropping by 90%. However, it remains unclear whether this will directly benefit consumers (especially those without insurance), as it seems mainly aimed at lowering the prices of drugs purchased by the government from pharmaceutical companies.

"Starting today, the prices of some prescription drugs will drop by 50%, 80%, or even 90% in an extremely short period of time," Trump said.

He warned: "Big Pharma can choose to cooperate actively, otherwise we will use the power of the federal government to compel them to comply with international minimum drug prices."

Trump previewed on social media on Sunday evening that this was "one of the most influential executive orders in American history."

White House officials stated that the scope of this new policy is broader than similar proposals attempted during Trump's first term. The previous plan only affected Medicare Part B drugs (such as injectable cancer treatments and vaccines) used by approximately 70 million seniors aged 65 and above, whereas this time the scope has been expanded.

According to the White House, this policy focuses particularly on drugs where US prices are far higher than international markets, with the most prominent examples being GLP-1 class weight-loss drugs like Ozempic and Wegovy.

"We will focus particularly on drugs with the largest price differences and highest costs," an official said. "GLP-1 class drugs meet both criteria and will naturally become the main targets. If prices don't fall, we will use more policy tools to force them down."

Trump posted on Truth Social: "Americans are paying far more for the same drugs than people in other countries. This is embarrassing. These drugs are developed in the same laboratories—how can there be such a gap?"

He pointed out that pharmaceutical companies often justify high US prices with the excuse of "research and development costs," but this reasoning is unreasonable. "All costs should be shared by everyone using the drugs; why should only Americans bear them? We are not 'suckers.'"

"In the past, pharmaceutical companies could settle everything with political donations, but this won't work with me and won't happen under the Republicans either. We must do the right thing, something the Democrats haven't been able to achieve for years."

White House officials emphasized that if pharmaceutical companies fail to cooperate in negotiations to lower prices, mandatory measures will be taken. "This is a comprehensive and tough reform plan, and the president takes it very seriously."

He also noted that the US accounts for less than 5% of the global population but contributes about 75% of the profits for the global pharmaceutical industry. "Foreign countries are enjoying subsidies from American patients, which is unfair. Americans should not foot the bill for global pharmaceutical innovation."

According to the executive order, within the next 30 days, Kennedy will set price reduction targets for US drugs and initiate negotiations with senior executives of pharmaceutical companies. If negotiations fail, the Department of Health and Human Services will enforce the lowest international drug prices through new regulations.

In addition, Trump will allow the direct sale of drugs at "most favored nation prices" to American consumers and expand the importation of cheaper drugs from other countries.

The Commerce Department will also consider restricting exports of US drugs to prevent foreign countries from further raising their own prices due to low-cost purchases of US drugs, thereby depressing US drug prices.

In terms of operation, the US federal government procures drugs through Medicare and Medicaid, accounting for a large market share. Through centralized procurement and the introduction of international drug price reference mechanisms, it is indeed possible to lower the prices of some drugs. Additionally, the issue of drug prices is one of the most watched livelihood issues among American voters, and the introduction of this policy undoubtedly quickly gathers public support, providing substantial political benefits for Trump and the Republicans.

However, pharmaceutical companies, which have traditionally relied on the US market for high profits, are sure to strongly oppose this executive order. The pharmaceutical industry is one of the most influential lobbying groups in Washington, and Big Pharma invested billions of dollars in congressional lobbying from 2018 to 2024. If profits are reduced by 50% to 90%, they are almost certain to counteract through legal litigation, threats of supply disruptions, delays in launching new drugs, and other means.

For ordinary people, however, this policy sends a strong signal: the US government is finally willing to challenge the interests of pharmaceutical companies and confront the issue of medical costs. Regardless of the final outcome, Trump's move has injected new practical significance into the "America First" concept.

Original source: https://www.toutiao.com/article/7503702979074146816/

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