President Trump announced a “major step forward” in prescription drug prices with a new deal that will save Americans billions of dollars when it comes to their health.
Under the most-favored nation agreement the president announced Monday, drug prices in the United States will be in line with the lowest prices paid by other developed nations, the White House said.
“Our most favored nations’ discounts represent the largest reduction in prescription drug prices in the history of our country,” Trump said during the announcement in the Oval Office, where he was surrounded by officials from some of the nation’s largest drug companies.
The agreements are projected to save Americans more than $600 billion, the president said.
US prescription drug prices average nearly three times higher than those overseas, according to a 2024 study by Rand Corp. Prices for branded drugs were more than four times higher.
Trump accused drug companies and other nations of ripping off the United States, arguing the US only consumes 13% of all prescription drugs but drug companies take 75% of their profits from the United States.
“We were ripped off by the pharmaceutical companies, and we were ripped off more than anything by other countries throughout the world,” he said.
The agreements bring the total number of pharmaceutical manufacturers with most favored nation deals to 26, covering 89% of the branded drug market.
Lowering prescription drug prices has been a major focus on the president in his second term and Republicans hope the popular policy helps their party in the midterm election.
Trump said he “lost some very good friends” over demanding a better deal on prescriptions although he declined to offer any details.
“But under that most favored nation agreement, we now pay the lowest price paid by other countries anywhere in the world,” he said.
