Trump to tie government drug costs to lower prices abroad; could be ’big announcement’ - Politico

EditorFrank DeMatteo
Published 05/07/2025, 05:11 PM
©  Reuters

Investing.com -- President Donald Trump is set to revive an initiative aimed at drastically reducing drug costs by linking the amount the government pays for certain medicines to lower prices in other countries, according to three sources familiar with the matter who spoke to Politico.

Early next week, Trump is expected to sign an executive order instructing his aides to pursue this initiative, known as "most favored nation," for a selection of drugs within the Medicare program. The initiative seeks to leverage the administration’s authority to drive down prices.

On Tuesday, Trump hinted at a "very big announcement" expected within the next week, which one of the sources characterized as a reference to the drug pricing proposal. The other two sources could not confirm if this was the "big announcement," but they did confirm that the drug pricing plan is likely to be announced in the coming week.

Trump stated, "We’re going to have a very very big announcement to make - like as big as it gets. It will be one of the most important announcements that have been made in many years about a certain subject."

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