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Trump is planning a groundbreaking decree: drug prices in the USA are plummeting!
US President Trump announces significant changes to reduce drug prices and lift sanctions against Syria on May 12, 2025.
Trump is planning a groundbreaking decree: drug prices in the USA are plummeting!
US President Donald Trump recently announced a significant announcement that could impact both health policy and international relations with Syria. During a conversation with Turkish President Recep Tayyip Erdogan, Trump said he was considering lifting sanctions against Syria to give the country a fresh start. This consideration is part of a larger plan that also addresses the exorbitant prices of prescription drugs in the United States.
Trump announced that he would sign a decree described as one of the “most consequential” in US history. With this move, he plans to reduce prescription drug prices by 30 to 80 percent. The president criticized the high drug prices compared to international standards and promised justice for American citizens. There is currently no central government price regulation in the USA, which leads to significant costs. Trump talks about American patients helping to finance so-called “socialist health care systems” in other countries, while pharmaceutical companies heavily discount their products to gain access to foreign markets.
Price regulation measures and their effects
Trump's announced measures refer to the "Most Favored Nation" principle, which is intended to ensure that the US does not pay more for medicines than the country with the lowest price. The US Department of Health and Human Services is tasked with conducting new price negotiations and taking action against perceived unfair pricing policies in other countries. Concrete targets for price reductions should be set within 30 days.
A study by the consulting firm Simon-Kucher is already analyzing the far-reaching effects on the global pharmaceutical industry and particularly on German companies. Trump warns that a decline in sales in the United States could increase pressure on drug companies to raise their prices in other countries. Experts fear that the industry will come under pressure to delay market entries in Germany or Europe in order to avoid low price references. In addition, the introduction of tariffs on pharmaceuticals from the EU could endanger the industry and its research power.
The announcement has already put pressure on the pharmaceutical industry and there are fears that high tariffs on medicines could complicate trade relations between the US and Europe. While Trump praised the tariff talks with China as a "complete reset," it remains to be seen what economic impact his actions will have on international drug prices.
Finally, it should be mentioned that there is also criticism of Trump's scope for action in the political landscape. Former US President Joe Biden strongly condemned Trump's dealings with Russia in an interview. At the same time, the US Federal Reserve is keeping the key interest rate at a high level, despite Trump's continued calls for a cut.