In a move aimed at fulfilling a long-standing campaign promise, the U.S. President signed a sweeping executive order on Monday directing pharmaceutical companies to lower their drug prices to match those paid in other developed nations. The order demands that drugmakers provide price targets within the next 30 days, threatening further action if "significant progress" towards these goals is not made.

Speaking at a press conference, the President asserted that the United States pays significantly more for prescription drugs compared to other developed countries, sometimes nearly three times as much. He stated his intention to equalize prices, suggesting the imposition of tariffs if domestic prices do not align with international levels, and indicated potential price reductions ranging from 59% to 90%.

Taking to his account on Truth Social earlier, Trump had posted, “Drug prices will be lowered by 59%. Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30% to 80%. They will rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA! I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World,” he posted.

The ’most favoured nation’s policy’ pricing approach instructs the government to explore facilitating direct-to-consumer purchasing programs that would offer drugs at the prices seen in other countries. It also tasks the Federal Trade Commission (FTC) with aggressively pursuing what the administration deems anti-competitive practices within the pharmaceutical industry, such as deals delaying the entry of cheaper generic alternatives.

While the announcement initially caused a dip in pharmaceutical stocks during premarket trading, shares of major drugmakers like Merck & Co, Pfizer, Gilead Sciences, and Eli Lilly later rallied.

Despite the uncertainty surrounding its implementation and the expected legal challenges, the administration maintains its commitment to lowering drug costs for Americans. An FTC spokesperson affirmed the agency's readiness to partner in this endeavor, highlighting the public's frustration with high drug prices. The order also directs the Secretary of Commerce and other agency heads to examine and consider actions regarding the export of pharmaceutical drugs or ingredients that might contribute to price disparities.