United States President Donald Trump signed an order that aims to reduce the prices of drugs in the country.
Setting a 30-day deadline, Trump has directed drugmakers to lower the prices of their medicines to align with what other countries pay. Calling it “one of the most consequential” executive orders in US history, Trump said he will take further action to lower prices if those companies do not make “significant progress” toward those goals. The order also directs the US Federal Trade Commission to consider aggressive enforcement against what the government calls anti-competitive practices by drugmakers.
Addressing a press conference, Trump told reporters that the government would impose tariffs if the prices in the US did not match those in other countries and said he was seeking cuts of between 59% and 90%. “Everybody should equalise. Everybody should pay the same price,” Trump said.
The United States pays the highest prices for prescription drugs, often nearly three times more than other developed nations. Trump tried in his first term to bring the US in line with other countries but was blocked by the courts, news agency Reuters reported.
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The nation’s pharmaceutical lobby, which represents the top US drugmakers, immediately pushed back against Trump’s order, calling it a “bad deal” for American patients. Drugmakers have long argued that any threats to their profits could impact the research they do to develop new drugs, news agency AP reported. Trade groups representing biotech and pharmaceutical companies decried the move.
“Importing foreign prices from socialist countries would be a bad deal for American patients and workers. It would mean fewer treatments and cures and would jeopardise the hundreds of billions our member companies are planning to invest in America,” Stephen Ubl, CEO of industry trade group PhRMA, said in a statement.
Trump’s order directs the government to consider facilitating direct-to-consumer purchasing programs that sell drugs at prices other countries pay.
