Trump’s Claim of Slashing Drug Prices by 1,500% Draws Scrutiny from Experts

President Donald Trump has made his most dramatic claim yet on lowering drug costs, telling reporters that prices will fall by as much as 1,500% in the coming months. Experts say such a drop is mathematically impossible and note that while the president has introduced several proposals, significant reductions have yet to materialize.

Trump’s primary initiative focuses on “Most Favored Nation” pricing, which would require drugmakers to sell medications in the US at the same prices offered in peer nations. Americans paid nearly three times more for prescription drugs in 2022 than residents of comparable countries. Trump attempted to implement this policy in his first term, but it was blocked in court and later rescinded. The current strategy relies on pressuring manufacturers to adopt the pricing voluntarily or face potential federal action.

The president has written to major pharmaceutical CEOs demanding that Medicaid, Medicare, and commercial insurers all receive “Most Favored Nation” pricing on new and existing drugs. Companies have been given 60 days to comply.

Other policy moves include exploring increased drug importation, reviewing exports, and having the FDA revoke or modify approvals for certain drugs deemed unsafe or improperly marketed. Trump has also supported reforms to pharmacy benefit managers (PBMs) and proposed direct-to-consumer sales of some medications at lower prices.

However, tariffs — another part of his strategy — could have the opposite effect. Trump has agreed in principle to a deal with the European Union imposing a 15% tariff on drug imports, with the possibility of levies as high as 250% on imports from non-European countries. While these tariffs are intended to boost domestic manufacturing, they could increase prices and worsen shortages of certain generic drugs.

Industry experts caution that meaningful price reductions require systemic reforms involving not just manufacturers but insurers, PBMs, and the broader healthcare supply chain. “The political signals are that any viable solution has to tackle holistically how drugs are priced and delivered in this complex health care system,” said Milena Sullivan of Avalere Health.

For now, Trump’s aggressive rhetoric signals political determination, but whether it translates into measurable savings for American consumers remains uncertain.

Credit: CNN Newsource

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