• Trump signs an executive order to cut drug prices by 30% to 80% under a "most favored nation" policy.
• Pharmaceutical companies are given 30 days to voluntarily comply with the new pricing model.
• Failure to comply may lead to regulatory actions and potentially importation of drugs from countries with lower prices.

President Donald Trump has signed an executive order aimed at lowering prescription drug prices in the U.S. by aligning them with the lowest prices in other developed countries. The order, initially teased via Truth Social, claims potential price cuts of "30% to 80%" for American consumers, marking a significant move against the pharmaceutical industry, which he accused of "profiteering" and "price gouging," according to Newsweek and Reuters.

As part of the order, pharmaceutical manufacturers have been given a 30-day deadline to voluntarily lower their drug prices. Should they fail to do so, the Trump administration has promised to implement further regulatory measures, including a potential shift to a "most favored nation" pricing model, which ties U.S. costs to international benchmarks, as stated by SCMP and BBC.

Trump emphasized the need for fairness in drug pricing, stating, "The United States will no longer subsidize the healthcare of foreign countries," during a White House press conference. He noted that because of the pricing disparities, which often see U.S. consumers paying significantly more for similar medicines than those in other countries, the current situation is untenable, according to India Times and Al Jazeera.

Healthcare experts have expressed skepticism about the new order's long-term effectiveness, citing concerns over the pharmaceutical industry's ability to comply and the potential for legal challenges against the order. The Pharmaceutical Research and Manufacturers of America (PhRMA) stated that linking U.S. prices to those of other countries could stifle innovation and reduce treatment options for patients, per Reuters and ABC News.

This executive order marks another attempt by Trump to address the ongoing issue of high drug prices, a concern he highlighted during his previous presidency. Despite the backlash from the pharmaceutical sector, Trump is pressing forward with this initiative, which he describes as "one of the most consequential executive orders in our country's history," as reported by HuffPost and New York Times.