What to Know About Trump’s Plan to Slash Drug Prices

The ’most favored nation' policy aims to have drugmakers respond to incentives and equalize drug prices between the United States and other countries.

A pharmacy manager works in a new Amazon pharmacy, adjacent to a fulfillment center, in Corona, Calif., on May 29, 2024. Terry Pierson/The Orange County Register via AP

President Donald Trump aims to lower prescription drug costs for all Americans with the aid of two carrots and a stick.

The positive and negative inducements are intended to get pharmaceutical manufacturers to equalize prices among developed nations, which would mean dramatically lowering prices offered to U.S. consumers while raising prices in other nations, particularly in developed ones.