US President Donald Trump has sent letters to 17 top drugmakers, demanding they reduce US prices to levels charged in wealthy countries by late September. Despite strong language, the demands are voluntary, as the administration lacks clear legal authority to compel lower prices.
The president’s executive order in May asked companies to lower prices, but many proposals have been deemed inadequate. Trump called most of these plans “shifting blame” and requested policy changes that would give industry billions in handouts.
New tariffs on imported medicines from Europe, set to take effect as early as August, could further complicate efforts to reduce drug prices. The levies may lead companies to raise prices for American patients, government programs, and employers.
Trump insists that US drug prices must be reduced to match the lowest prices charged in a peer country – the “most favored nation” pricing model. This would apply to all new drugs across both government and commercial insurance, with existing medicines exempt.
Source: https://www.nytimes.com/2025/07/31/health/drug-prices-trump.html