President Donald Trump warned 17 major pharmaceutical companies on Thursday that they must lower prescription drug prices or face undisclosed punitive measures. The ultimatum follows his recent executive order aimed at bringing U.S. drug costs in line with prices in other developed nations.
In a series of letters posted on his official Truth Social platform, Trump gave the companies a 60-day window to work with his administration on pricing reform. “If you refuse to step up we will deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices,” Trump wrote, without detailing the specific enforcement actions under consideration.
Trump’s administration is targeting the longstanding disparity in global drug pricing. According to the White House, Americans currently pay more than three times the cost for medications compared to citizens in similarly developed countries.
Central to Trump’s reform strategy is the “Most Favored Nation” pricing model. Under this approach, drug prices in the United States would be benchmarked against the lowest price that other developed countries pay for the same medication. The Trump administration intends to apply this policy to drugs used by seniors under Medicaid, and potentially to newly approved pharmaceuticals as well.
In the letters, Trump criticized the pharmaceutical industry’s response to his May executive order, stating that their reactions have been inadequate and self-serving. “More of the same: shifting blame,” he wrote, accusing drugmakers of proposing policy changes that would benefit their bottom lines while ignoring the financial strain on consumers.
The push for reform follows mounting public pressure over skyrocketing medication costs, particularly for life-saving treatments. By focusing on transparency and international price parity, the Trump administration aims to deliver immediate relief to American families burdened by inflated pharmaceutical costs.
