Trump Targets Drug Prices with 'Most Favored Nation' Policy, 1500% Reduction Claim Deemed Mathematically Impossible

Donald Trump has reignited his focus on lowering prescription drug costs in the United States, asserting a dramatic 1500% reduction in prices, a claim that experts quickly labeled as mathematically impossible. The announcement, initially shared via a tweet by "Ash Crypto," underscores Trump's continued push for a "Most Favored Nation" (MFN) drug pricing policy. This strategy aims to compel pharmaceutical companies to offer the U.S. the lowest prices available in other developed countries.

The core of Trump's initiative revolves around the MFN model, which seeks to align U.S. drug prices with the significantly lower rates paid by nations in Europe and elsewhere. He has recently sent letters to 17 major pharmaceutical company CEOs, demanding binding commitments to implement MFN pricing for drugs, particularly for Medicaid enrollees and all new medications. Failure to comply, according to Trump, could lead to "unspecified consequences."

However, the pharmaceutical industry and many health policy experts remain skeptical of both the feasibility and the impact of such measures. Analysts from investment banks have described the demands as "unachievable" due to the potential hit on company revenues. The 1500% reduction figure specifically has been widely dismissed; as one expert noted, a 100% reduction would mean a drug is free, making a 1500% cut nonsensical in practical terms.

Previous attempts by the Trump administration to implement similar MFN policies, such as a model program for Medicare, faced legal challenges and were ultimately blocked in court on procedural grounds. Despite these hurdles, Trump continues to signal "strong political will" on the issue, pushing for voluntary compliance while hinting at potential regulatory actions or tariffs on imported medicines as leverage. The ongoing debate highlights the complex challenges of drug pricing reform within the U.S. healthcare system.