The US president has said he aims to reduce drug prices by matching American rates to the lowest worldwide

US President Donald Trump is set to sign a sweeping executive order to cut prescription drug prices in America by up to 80%, in what he teased as "one of the most important and impactful" orders in the nation's history.

In a post on his Truth Social network on Sunday, Trump cryptically announced that his "next TRUTH will be one of the most important and impactful I have ever issued."

Three hours later, the president announced that he will sign "one of the most consequential Executive Orders in our Country's history," aimed at cutting prescription drug costs by aligning them with the lowest global prices. The signing is scheduled for 9am Monday.

"I will be instituting a MOST FAVORED NATION'S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World," Trump said in a follow-up post. "Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30 percent to 80 percent."

The US currently spends around $400 billion a year on prescription drugs, often paying triple what other countries do and more than any other nation, according to the National Health Expenditure Accounts.

Trump argued that the change will, "for the first time in many years, bring FAIRNESS TO AMERICA," save trillions, and lower healthcare costs nationwide.

"Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before," he added.

The policy will affect Medicare, which insures around 70 million older Americans. During his previous term, Trump sought to cut prices for physician-administered drugs by benchmarking them against rates in peer nations with government-set pricing. The order was blocked by US courts and later rescinded by the administration of former President Joe Biden.

Legal barriers to these policies were removed in 2022 when the Democrat-led Congress passed the Inflation Reduction Act, granting Medicare limited negotiating powers.

The Pharmaceutical Research and Manufacturers of America, which has sued the Trump administration over similar efforts, told the Financial Times that "government price setting in any form is bad for American patients" and blamed rising costs on "middlemen in the system." The pharmaceutical sector has also campaigned against price caps, warning they could limit innovation and reduce spending on research.

Trump rejected the claims, accusing drug companies of using research costs as an excuse to overcharge consumers. "All of these costs were, and would be, for no reason whatsoever, borne by the 'suckers' of America, ALONE," he said.

(RT.com)