2LT International News

WASHINGTON, D.C.: U.S. President Donald Trump signed an executive order this week to lower the cost of prescription drugs in the United States by requiring drug companies to match the lower prices found in other countries. Experts say the plan will be challenging to implement.

The order gives drugmakers 30 days to start reducing prices. If they don’t make real progress, the government may take stronger steps, such as allowing drug imports from other countries or setting export limits.

Trump said Americans pay far more for medicine than people in other countries and wants everyone to pay the same price. He mentioned a friend who bought a weight-loss shot in London for US$88, while it costs $1,300 in the U.S.

Drug company stocks rose after the order was released as investors realized the rules weren’t as strict as expected. Many people, including lawyers and industry experts, questioned whether the order could legally be enforced.

Trade groups representing drug companies strongly criticized the plan. One group leader stated that importing lower prices would harm innovation, research, and American jobs.

The order also requests that the Federal Trade Commission (FTC) take action against unfair practices by drugmakers, such as delaying the introduction of cheaper generic drugs to the market.

Legal experts believe the order will face court challenges for going beyond what U.S. law allows, especially regarding drug imports.

The order is part of Trump’s effort to fight inflation and reduce everyday costs for Americans. Although the full effects of the order won’t be seen right away, legal battles are likely if drug companies are forced to lower their prices.

Despite the announcement, stock prices for major drug companies like Pfizer, Merck, and Gilead rose on May 12, as the plan lacked detailed steps and immediate action.