Trump's Bold Move: Can He Really Cut US Drug Prices?

President Trump's Executive Order on Drug Prices: A Complex Issue with Uncertain Outcomes On May 13th, 2025, President Trump signed an executive order aimed at lowering prescription drug prices in the United States. This action comes amid widespread concerns about the high cost of medications in the US compared to other developed countries. The order sets price targets for drug companies, giving them six months to meet them. However, the order's legal authority is unclear, and its effectiveness remains to be seen. Elena Casas, a Reuters journalist, points out that brand-name drugs are on average three times more expensive in the US than in other Western countries. She explains that publicly funded healthcare systems in those countries negotiate prices with drug manufacturers, resulting in lower costs for consumers. The executive order attempts to achieve similar price reductions in the US, but without the established framework of a public healthcare system, its success is uncertain. "It's not clear though what legal authority the order has," Casas states. "So whether the president can set drug prices might end up being tested in court." Indeed, the drug companies' initial reaction suggests skepticism. Shares in these companies fell on Monday, but quickly recovered, indicating a lack of confidence in the order's enforceability. The drug companies argue that they invest heavily in research and development in the US, and that higher prices are necessary to fund these crucial activities. They contend that lower prices might stifle innovation and delay the development of new drugs. The debate over drug pricing in the US is complex and multifaceted, with significant implications for both consumers and the pharmaceutical industry. The outcome of President Trump's executive order will likely shape the future of healthcare policy in the country.