Trump’s executive order on reducing drug prices: the U.S. acts preemptively to avoid shortages of essential medicines in a potential global military conflict

On May 12, 2025, President Donald Trump signed one of the most radical healthcare executive orders, titled “Delivering Most-Favored-Nation Prescription Drug Pricing To American Patients.”

The order introduces a “Most Favored Nation” model, requiring pharmaceutical companies to sell drugs in the U.S. at prices no higher than those in other developed countries. According to Trump, this could reduce drug costs for Americans by 30–80%.

The initiative aims to eliminate “foreign free-riding,” where other countries access American pharmaceutical innovations at significantly lower prices, while U.S. consumers effectively subsidize global research and development costs.