Tuesday, December 9, 2025

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Trump and RFK Jr. target Big Pharma’s global pricing scheme in landmark drug pricing reform

Big Pharma is under renewed scrutiny after U.S. President Donald Trump and Secretary of Health and Human Services (HHS) Robert F. Kennedy Jr. jointly exposed what they call a decades-long pharmaceutical pricing scam costing Americans billions.

In a recent announcement, Trump detailed how Americans routinely pay up to ten times more than citizens in Europe and other developed countries for identical medications — same drugs, same factories, same companies.

Examples cited include a breast cancer drug costing $16,000 in the U.S. but just $1,600 in Sweden, and a popular weight-loss injection priced at $1,300 in New York but only $88 in London. Trump attributed this disparity to pharmaceutical companies caving to foreign governments that negotiate lower prices while shifting the burden onto American consumers — a tactic made possible, he said, because “the drug lobby is the strongest lobby in this country.”

Trump’s solution is an executive order enacting a “most favoured nations” pricing policy. This revolutionary measure mandates that Americans pay no more than the lowest price offered in other developed nations for the same drugs. The initiative is expected to slash U.S. drug prices by 59% to 90%.

RFK Jr. echoed the criticism, accusing both political parties of failing to act due to deep pharmaceutical lobbying influence. He claimed every major Democratic leader over the past two decades promised drug price reform, only to be undermined by an industry that spends more on lobbying than any other in the U.S.

FDA Commissioner Marty Makary endorsed the plan, calling it “the most powerful executive order on pharmacy pricing and healthcare ever in the history of our nation.” The administration has given drug companies 30 days to comply, with threats of tariffs and trade action against countries that refuse to pay their “fair share.”

The policy signals a major shift in who bears the cost of global drug development, aiming to end what Trump called an “outrageous subsidy” where Americans fund lower drug costs for the rest of the world.

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