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Donald Trump’s drug plan risks higher medicine prices in Europe
- In May 2025, U.S. President Donald Trump signed an executive order establishing a Most Favored Nation policy that ties American medication costs to the lowest prices available in similarly developed countries.
- This policy aims to lower U.S. drug costs but could pressure European healthcare systems to raise prices, as pharmaceutical companies seek to maintain revenue.
- Many European nations implement rigorous pricing regulations to prevent abrupt fluctuations in drug costs and evaluate medicines based on their therapeutic benefits, whereas the UK employs a clawback mechanism combined with thorough value-for-money assessments.
- A Rand Corporation analysis found that pharmaceutical prices in the United States are more than double those in 32 other OECD nations, and experts caution that lowering these prices could reduce funding for innovation and investment.
- The policy’s implementation faces legal challenges and ongoing negotiations, with industry warnings that price shifts may cause reduced drug access and that the UK likely resists major pricing method changes.
15 Articles
15 Articles
Comparing U.S. drug prices to other countries: A more nuanced view
President Trump recently signed a new executive order advancing a “most favored nation” (MFN) approach to drug pricing. The policy would link U.S. prices for certain medicines to those paid in other high-income countries – an idea that’s gaining traction…
Jake Adams: Most Favored Nation drug prices
I simply can’t imagine that the Administration or Congress would want to reduce patient's access to essential and possibly life-saving medications. But if the policy of Most Favored Nation (MFN) drug pricing is enacted (as the President recently proposed via…
The MFN Executive Order: A Global Reset For U.S. Pharma - Above the Law
It's a bold attempt to recalibrate global drug pricing — with U.S. patients at the center. But without clear enforcement, legal grounding, or international cooperation, its future remains very uncertain.
Frankfurt School of Finance & Management research shows Trump's drug pricing cap could shrink US economy and reduce innovation
/PRNewswire/ -- U.S. President Donald J. Trump issued an Executive Order on May 12, 2025, directing the Department of Health and Human Services to communicate...
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