President Donald Trump’s effort to lower drug costs amounts to price control, expert says

President Donald Trump signed an executive order on Monday directing pharmaceutical companies to reduce the prices of prescribed medicines or facing consequences from the federal government.

But the effort exerted to monitor prices because it is not limited to government programs only-and similar policy initiatives in other sectors have prompted the deficiency, according to Michael Canon, Director of Health Policy Studies at the Center for the Local Institute for the Washington headquarters.

“We have seen governmental price controls,” Canon told Fox News Digital Monday. “We call her rental control, create a shortage. We have seen it when it comes to food. We call it price covers there, and produce a shortage.”

“We see price covers after natural disasters.” “We call them the anti-circumvent laws, and they produce a shortage. This is what we can expect to produce price controls when it comes to medication as well-this is if you have a binding price ceiling, you will get a shortage, and I think it is completely wrong.”

Prices are observed when the government is stepping to impose restrictions on how much one can impose on various goods or services in the free market.

While price controls may decrease the costs of some consumers, they were largely ineffective in American history. For example, former President Richard Nixon implemented price control tools in the 1970s in an attempt to repair wages and other prices – which led to the gas crisis and another shortage throughout the country.

President Trump takes “Big Pharma” by signing an executive order to reduce medicine prices

For example, there was a series of initiatives revealed by countries in response to the Covid-19 epidemic in 2020 to address the price sacrifice, although it was difficult to enforce. In Michigan, the governor of the state, Gretch, has signed an executive order in March 2020 to prevent individuals or companies from selling any state products “at a price above 20 percent of what the business, individual or official provided,” according to a 2020 press statement.

Trump announced on Monday that the executive order is directing the Ministry of Health and Humanitarian Services to determine the price goals for drug manufacturers. But Cannon indicated that it is not only the price of the government – it also applies to the free market and the private sector.

Failure to comply with the Ministry of Justice and the Federal Trade Committee will “take enforcement measures against any anti -competition practices”, along with other consequences. In addition, Trump has made plans to launch “the most preferred drug prices for countries”.

“The principle is simple – no matter how lowly paid for a property in other developed countries, and this is the price that the Americans will pay,” Trump said at the White House on Monday. “Some prices of drugs and pharmaceutical preparations will be reduced immediately by 50 to 80 to 90 %.”

“We will draw,” Trump said. “We will pay the same thing. We will pay what Europe pays.”

He pushed the White House back against comments that this step was equal to price oversight.

“If the Americans have a truly free and fair market, they will not pay several times against the same medicines that the Europeans enjoy exactly,” White House spokesman Kush Desi said in a statement on Tuesday in Fox News Digitter. “The historical executive of President Trump is to reform anti -competition behavior that forces ordinary Americans to support health care for other developed countries.”

RFK JR. At the RX summit and illegal drug summit in the Gaylord OPRYLAND resort and conferences in Nashville, Tin, Thursday, April 24, 2025. (© Nicole Hester / The Tenssean / Usa Toys Network)

Medicines prices have increased dramatically in recent years. From January 2022 and January 2023, the prices of medicines described by more than 15 % increased, with an average of $ 590 per drug product, according to the Ministry of Health and Humanitarian Services. Of the 4,200 prescription drugs listed on that list, 46 % of the price increases exceeded the inflation rate.

The Pharmaceutical Research Group and Manufacturers in America have argued that the executive will harm American patients.

Stephen J. Opel, President and CEO of PHRMA, in a statement on Monday: “Importing foreign prices from socialist countries will be a bad deal for American patients and workers.” “This means that treatments and treatments are less and will endanger the hundreds of billions that our member companies are planning to invest in America.”

Meha Saucus member listening to “corruption” for the public health sector “seized by Big Pharma” seized by Big Pharma

In April, President Donald Trump signed another executive aimed at treating medical care drugs. (Swimming pool)

In April, Trump signed another executive aimed at treating medical care drugs. Specifically, this HHS ranking requires unifying the medical care payments for prescribed medicines, including those used for cancer patients, regardless of where the patient receives treatment.

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Patients can face a decrease in prices by up to 60 %, according to the White House fact newspaper.

It also called for the MEDICARE pushing for some of the prescribed price drugs that hospitals pay for these drugs, with a rate of up to 35 % than the government pays to obtain these drugs, according to the White House.

The Associated Press contributed to this report.