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Price Drop of 30% to 80%: Trump Suddenly Posts

Will U.S. Drug Prices Experience a "Free Fall"? On May 11, local time, Trump dropped a "bombshell" announcement on his social media platform, Truth Social, declaring that he would sign an executive order the next day that he claimed was the "most important in American history." Once implemented, prescription drug and medicine prices in the U.S. would immediately drop by 30% to 80%!​
He criticized the outrageous prices of American drugs, stating that the same medication is sold in the U.S. for 5 to 10 times more than in other developed countries. Pharmaceutical companies always use research and development costs as an excuse, and he hinted that campaign donations are behind the scenes manipulating the situation. This time, he plans to use the "Most-Favored-Nation policy" to align U.S. drug prices with the lowest global prices, achieving a balance in global drug pricing.​
In fact, Trump has been active in the pharmaceutical field recently. On April 8, he announced plans to impose tariffs on drugs, hoping to encourage pharmaceutical companies to set up factories in the U.S.; on April 25, a report poured cold water on this idea, stating that a 25% tariff would increase U.S. drug costs by $51 billion annually, potentially raising drug prices by 12.9%. On May 5, he called for the FDA to simplify reviews, promote domestic drug manufacturing, and increase inspections of foreign drug companies. ​
As soon as the news broke, the stock prices of Japan's three major pharmaceutical companies plummeted. Opinions within the U.S. are divided; some hope for reforms in the pharmaceutical industry, while others remain skeptical, especially since a similar executive order was struck down by the courts in 2020. Whether drug prices can actually decrease this time and what impact it will have on the global pharmaceutical industry remains to be seen!​
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