On July 31, 2025, President Donald J. Trump sent letters to major pharmaceutical manufacturers, urging them to reduce prescription drug prices in the United States to match the lowest prices available in other developed nations. This initiative, known as the most-favored-nation pricing policy, requires drug manufacturers to provide these lower prices to Medicaid patients and to refrain from offering better prices to foreign nations for new drugs. The letters also indicate that the federal government is prepared to take further action to protect American families from high drug prices if manufacturers do not comply with these requests.

The article emphasizes that Americans currently pay significantly higher prices for brand-name drugs compared to their counterparts in other OECD countries, with U.S. prices reportedly more than three times higher. It highlights the discrepancy where American taxpayers, despite representing a small percentage of the global population, contribute to a substantial portion of global pharmaceutical profits. The President’s administration aims to address this issue by taking steps that would lower prices for Americans while ensuring that pharmaceutical companies do not benefit from U.S. subsidies while charging higher prices domestically.

President Trump has framed this effort as part of his commitment to prioritize American patients and ensure they receive fair pricing for medications. In a previous Executive Order aimed at implementing the most-favored-nation pricing, the administration sought to engage with pharmaceutical companies to facilitate these changes. The recent letters signify that further negotiations have not yielded favorable results, and the President is now seeking immediate commitments from drug manufacturers to alleviate the financial burden on American consumers.

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