President Donald Trump is demanding that major pharmaceutical companies drop their prices for American consumers to match what other countries pay. He’s giving them 60 days to comply or face government action.
Key Facts:
- Trump sent formal letters to 17 top drugmakers, including Pfizer, Eli Lilly, and Merck, demanding lower U.S. drug prices.
- He is pushing for Medicaid drug prices to match the lowest global rates and for new drugs to launch at those prices too.
- Trump threatened to use trade policy and other tools if companies don’t voluntarily comply within 60 days.
- The S&P 500 Pharmaceuticals Index dropped 2.7% following the announcement.
- Drugmakers and trade groups pushed back, arguing price controls threaten innovation and American jobs.
The Rest of The Story:
President Trump is ramping up his fight against high prescription drug prices.
In letters to top pharmaceutical companies, he demanded they immediately lower costs for Medicaid patients and guarantee that future drugs won’t cost more than they do overseas.
If they don’t act within 60 days, Trump pledged to use “every tool in our arsenal.”
The financial markets reacted quickly. Pharmaceutical stocks slid, with Merck and Lilly among the biggest losers.
The industry claims global price matching could hurt innovation and U.S. leadership in biotech, warning it might lead to fewer new treatments.
Trump’s demands include direct price relief for Americans and new ways for patients to bypass middlemen.
He also wants companies to use increased foreign profits—gained through trade negotiations—to lower U.S. prices.
But analysts remain skeptical that his plan can be implemented legally or quickly.
🚨 BREAKING: President Trump gives an ULTIMATUM to big pharma companies, DEMANDING drugs prices in America match the LOWEST cost anywhere else in the world
"If you REFUSE to step up, we'll deploy every tool to protect American families from continued abusive drug pricing… pic.twitter.com/pRU5fRKUpv
— Nick Sortor (@nicksortor) July 31, 2025
Commentary:
For decades, Americans have paid more for prescription drugs than almost any other country. This has been a failure of leadership across both parties.
Presidents and lawmakers have let Big Pharma operate unchecked while everyday citizens foot the bill. Instead of standing up for the American people, too many in Washington have bowed to corporate lobbyists.
The result? Exploding prices, rising insurance premiums, and a healthcare system that profits off sickness.
The pharmaceutical industry, insurance giants, and pharmacy benefit managers have created a maze of inflated costs, rebates, and backroom deals that keep Americans overpaying.
Many other nations negotiate directly with drugmakers—yet the U.S. government has largely refused to do the same. Trump’s demand to tie U.S. prices to global benchmarks is a long-overdue move.
If companies can sell the same drug in Germany or Canada for half the price, there’s no reason Americans should pay double.
Critics warn that linking to foreign prices could stifle innovation. But what’s the innovation worth if the people who need the drugs can’t afford them?
Americans are tired of hearing excuses while watching their pharmacy bills climb.
America leads the world in prescription use and chronic health conditions. It’s no coincidence we also pay the most. That dynamic needs to end.
If pharmaceutical companies want to continue doing business in the U.S., they should be expected to offer fair pricing.
Trump’s willingness to fight them on this could finally bring relief to millions.
The Bottom Line:
President Trump is pushing hard for lower prescription drug prices by demanding companies match the prices they charge overseas.
The move targets decades of overcharging in the U.S. while calling out Big Pharma’s pricing schemes.
Whether the plan holds up legally is uncertain.
But Trump is spotlighting a broken system that has hurt American families for too long.
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