Trump announces new drug-price pact promising over $600 billion in savings

During a briefing in the Oval Office, President Trump presented a most-favored-nation arrangement that will require U.S. prescription drug prices to match the lowest levels paid by peer nations, a policy he described as a "major step forward." The White House estimates the agreement will generate savings exceeding $600 billion for American patients. Under the deal, 26 pharmaceutical manufacturers—covering 89% of the branded drug market—have committed to the pricing terms.

Citing a 2024 Rand Corp. analysis, the administration highlighted that U.S. drug costs are almost three times higher than those in other developed countries, with branded drugs more than four times as expensive. Trump accused drug companies and foreign markets of exploiting the United States, noting that the country consumes only 13% of global prescriptions while generating 75% of pharmaceutical profits. The policy reflects a core focus of Trump's second term and is intended to resonate with voters ahead of the midterm elections, even as he mentioned losing personal relationships over the negotiations.