Donald Trump announces 59% cuts in US prescription drug prices, one day after new pharma policy

US President Donald Trump announced on Monday, May 12, that the US government is reducing prescription drug prices by 59 per cent, one day after he announced the new US pharmaceutical policy. 

On Sunday, President Trump announced that he is planning to sign an executive order which will reduce the US prescription drug prices with immediate effect.

“DRUG PRICES TO BE CUT BY 59%, PLUS! Gasoline, Energy, Groceries, and all other costs, DOWN. NO INFLATION!!! LOVE, DJT,” said Donald Trump in his post on Truth Social.

Trump's Pharma Executive Order

US President Donald Trump said that he would sign the executive order at 9:00 a.m. on Monday, May 12, which will bring the new US pharmaceutical policy into effect.

According to the news agency AFP's report, the US drug prices were set to be brought down between 30 and 80 per cent, as Trump plans to institute a “Most Favoured Nation's” policy which will pin the cost of the drugs sold in the United States to the lowest price paid by other nations for the same drug.

The reduction of the prescription drug costs in the United States would be counterbalanced by the higher cost of the same US drugs sold to the nations, said Trump, according to the agency report. 

“Most favoured nation” is a status which is given by the World Trade Organisation (WTO), which aims to prevent discrimination between a country and its trading partners, and helps to level the trading ground for international trade, as per the report.

The report also mentions how this is not the first time Trump has tried to lower drug prices in the United States. During his first term as the President of the United States, he reportedly announced a similar proposal to cut the US drug prices.

However, this plan failed in the face of strong opposition from the pharmaceutical industry in the nation. Last month, Donald Trump signed an executive order to lower drug prices by giving the US states more margin to bargain and hunt abroad for better price negotiations, reported the news agency.

Trump later on Monday, May 12, signed an executive order and set a 30-day deadline for US drugmakers to lower the cost of the prescription drugs in the United States or face the new limits as per the government mandates, reported AP.