Trump's new drug pricing plan faces fierce industry backlash

In May 2025, President Donald Trump unveiled an initiative aimed at modifying the pricing structure for certain medications, with expectations of lowering drug costs for Americans. The plan, effective upon the signing of an executive order, targets medications covered by Medicare, particularly those administered during doctor's visits, exemplifying a controversial shift toward a 'most favored nation' policy. This approach intends to align U.S. drug prices with those of countries that pay the least, a change that has been met with immediate pushback from the pharmaceutical industry, which argues that adopting foreign pricing could hinder their investments in the U.S. pharmaceuticals market. The executive order, backed by the Health and Human Services Department, signifies a persistent concern over rising drug prices that have frustrated both Democratic and Republican politicians for years. Despite Trump’s claims of potentially huge savings for American taxpayers, experts emphasize that the plan will not uniformly benefit all patients, as most of the drugs affected are specialized treatments provided in specific healthcare settings. Additionally, the plan has drawn attention from notable figures including Robert F. Kennedy Jr., who pointed out that drug companies' cooperation will be crucial for the plan's success and timeline. Furthermore, Trump has highlighted the glaring disparities in drug prices between the United States and other countries, using anecdotes to illustrate his point. The substantial difference in costs, such as the price of the drug Ozempic, which can cost $1,300 in New York compared to $88 in London, has become a focal point of the ongoing debate over pharmaceutical pricing strategies. The economic implications of these price disparities suggest that adoption of the proposed model could lead to significant shifts in both healthcare costs and drug availability. Despite the public outcry regarding high U.S. drug prices, activists and political leaders remain skeptical about the efficacy of the proposed changes. The long history of stalled legislation on drug pricing reform casts doubt on the anticipated impact of Trump's order. As the deadline for implementation approaches, stakeholders in the pharmaceutical sector are closely monitoring developments, indicating a readiness for further negotiation, should the proposed strategies fail to yield favorable results for both companies and consumers in the long term.