Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients

Executive Order May 15, 2025 Document 2025-08876

Summary

On May 12, 2025, President Donald Trump signed an executive order aimed at lowering prescription drug prices in the United States by implementing a "most-favored-nation" pricing model. This policy seeks to ensure that Americans pay no more for prescription drugs than the lowest price available in other developed countries, addressing the current imbalance where U.S. consumers often subsidize lower prices abroad. The order could face legal challenges from pharmaceutical companies and international trade partners, as it pressures drug manufacturers to align U.S. prices with global standards and threatens aggressive actions if compliance is not achieved.