President Donald Trump announced a new agreement Monday that he projected will save Americans more than $600 billion on prescription drugs. The deal, described as a "most-favored nation" agreement, aims to align U.S. drug prices with the lowest prices paid by other developed nations, according to the White House.
During an announcement in the Oval Office, Trump stated that these discounts represent the largest reduction in prescription drug prices in U.S. history. He asserted that the United States has been overpaying for pharmaceuticals compared to other countries, noting that while the U.S. consumes 13% of all prescription drugs, companies derive 75% of their profits from the U.S. market.
"We were ripped off by the pharmaceutical companies, and we were ripped off more than anything by other countries throughout the world," Trump said.
The agreement brings the total number of pharmaceutical manufacturers with most-favored nation deals to 26, which the administration stated covers 89% of the branded drug market.
Lowering prescription drug costs has been a key focus of the president's agenda. According to a 2024 study by Rand Corp., U.S. prescription drug prices are, on average, nearly three times higher than international prices, with branded drugs costing more than four times as much overseas. Trump indicated that he had faced opposition to these negotiations but maintained that the agreement ensures Americans pay the lowest prices globally.