President Trump’s executive order to slash drug prices reveals a startling partisan shift as Democrats who once championed lower medication costs now criticize the same policy they previously supported.

At a Glance

• Trump signed an executive order requiring U.S. drug prices to match the lowest prices paid in other developed countries
• The order could reduce prescription costs by 59-90%, particularly benefiting seniors and those on fixed incomes
• Democrats who previously supported lowering drug costs under Biden are now criticizing Trump’s similar approach
• Americans currently pay over three times more for brand-name drugs than citizens in other OECD nations
• Rep. Ro Khanna (D-CA) broke ranks with fellow Democrats by supporting Trump’s order

Trump’s Bold Move on Prescription Drug Pricing

President Donald Trump has issued an executive order aimed at dramatically reducing prescription drug prices in the United States. The order implements a “most favored nation” pricing model, requiring that Americans pay no more for medications than citizens in other developed countries.

This approach threatens to tie drug prices paid by government programs like Medicare and Medicaid to the lowest prices available globally if pharmaceutical companies don’t voluntarily comply with the directive. The White House estimates this could lead to price reductions between 59% and 90%, particularly benefiting senior citizens and Americans on fixed incomes.

The executive order tackles a longstanding disparity in global pharmaceutical pricing. Americans currently pay over three times more for brand-name prescription drugs than citizens in other OECD nations, despite the U.S. funding approximately 75% of global pharmaceutical profits.

Health and Human Services Secretary Robert F. Kennedy Jr. has been tasked with facilitating direct-to-consumer sales at lower prices, while the administration plans to provide specific price targets to drugmakers within 30 days to align U.S. prices with those in other developed nations.

Addressing America’s Drug Price Burden

Trump’s rationale for the action stems from what he describes as an unfair global pricing system that forces Americans to subsidize lower drug costs in other countries. “We’ve been subsidizing other countries throughout the world,” Trump stated.

Drug manufacturers routinely offer significant discounts abroad while charging premium prices to American consumers, despite benefiting from U.S. research subsidies and healthcare spending. The order also includes provisions for importing medications from other countries, increasing transparency in drug pricing, and expanding availability of generics and biosimilars.

“In case after case, our citizens pay massively higher prices than other nations pay for the same exact pill, from the same factory, effectively subsidizing socialism aboard [abroad] with skyrocketing prices at home. So we would spend tremendous amounts of money in order to provide inexpensive drugs to another country. And when I say the price is different, you can see some examples where the price is beyond anything — four times, five times different.”, said President Trump.

Trump signed a similar executive order during his first term in 2020, which faced legal challenges and was subsequently dropped by the Biden administration. The pharmaceutical industry has already voiced opposition to the new order, with the Pharmaceutical Research and Manufacturers of America (PhRMA) calling it detrimental to American patients. The legal authority to enforce the order remains unclear, and the administration may need to resort to formal rulemaking procedures if drugmakers refuse to comply.

The Democratic Reversal on Drug Pricing

What’s particularly notable about the current situation is the dramatic shift in Democratic response to drug pricing policies. While Democrats championed Medicare drug price negotiations under the Biden administration, many are now criticizing Trump’s more aggressive approach to the same issue. Senator Elizabeth Warren (D-MA) dismissed the executive order as “nothing more than a flashy press release,” while Senator Ron Wyden (D-OR) accused Trump of not being serious about lowering drug prices despite the order’s potentially far-reaching impact.

“Donald Trump is all hat and no cattle when it comes to lowering the price of prescription drugs. If Trump was serious about lowering drug prices, he would work with Congress to strengthen Medicare drug price negotiations, not just sign a piece of paper.”, added Sen. Ron Wyden (D-OR).

Not all Democrats have opposed Trump’s initiative, however. Representative Ro Khanna (D-CA) broke ranks with his colleagues by expressing support for the executive order and announcing plans to introduce legislation that would codify it. “Today, I am introducing legislation to codify President Trump’s executive order, ensuring Americans do not pay more than people in other countries for drugs,” Khanna stated. This divergence highlights the complex political dynamics surrounding healthcare policy in the current administration.

Global Implications and Implementation Challenges

Trump’s approach to drug pricing could have significant international ramifications. The president has indicated that he believes the policy will pressure other countries to raise their prices rather than causing pharmaceutical companies to suffer financially. “Europe’s going to have to pay a little bit more. The rest of the world is going to have to pay a little bit more, and America is going to pay a lot less,” Trump explained. The executive order directs the U.S. Trade Representative and Department of Commerce to take action against foreign policies that artificially lower drug prices abroad at Americans’ expense.

“Whoever is paying the lowest price, that’s the price that we’re going to get.”, said Trump.

Despite the potentially dramatic impact of Trump’s executive order, implementation faces significant hurdles. Medicare had already begun negotiating drug prices under the Biden administration, with new prices set to take effect in January 2026. Trump’s approach represents a more aggressive stance, with Dr. Mehmet Oz noting that even the negotiated Medicare prices remain higher than those in Europe. The pharmaceutical industry’s opposition and potential legal challenges could delay or complicate the order’s implementation, raising questions about how quickly Americans might see the promised price reductions.