Very, very big announcement coming? Trump to reportedly revive drug pricing plan tied to global rates

Asked about the brewing announcement, White House press secretary Karoline Leavitt remained tight-lipped

US President Donald Trump is preparing to revive a sweeping plan to slash prescription drug costs by tying the amount the government pays for certain medications to prices paid abroad, three people familiar with the matter told POLITICO.

Trump is expected to sign an executive order early next week directing his aides to pursue the initiative, known as the “most favored nation” policy, for a selection of drugs covered under the Medicare program, according to POLITICO. The policy aims to use the administration’s regulatory authority to force down drug prices by benchmarking them against lower international rates.

The plan has not been finalised and could still change as aides work through the details, people involved in the plan told POLITICO, who were granted anonymity to discuss internal deliberations. Trump has not yet personally signed off on the final version.

The president hinted at the proposal on Tuesday, teasing what he called a “very very big announcement” in the coming days. One source familiar with the matter told POLITICO this was likely a reference to the drug pricing plan, while the other two sources said they couldn’t confirm that but did say the policy is expected to be announced next week.

“It will be one of the most important announcements that have been made in many years about a certain subject,” Trump said.

Should Trump proceed with the executive order, it would mark a direct confrontation with the pharmaceutical industry, one of Washington’s most influential lobbies.

Trump first introduced the "most favored nation" concept in 2018, but it failed to advance amid stiff industry opposition. He later attempted to implement the plan in the final months of his presidency, but it was blocked by a federal judge, who ruled the administration had not followed proper procedures. The Biden administration subsequently withdrew the proposal.

Asked about the brewing announcement, White House press secretary Karoline Leavitt remained tight-lipped:

“The President will make a big and historic announcement on Monday. Until then, everyone can keep guessing!”