Washington: US President Donald Trump has signed an executive order aimed at reducing prescription drug prices in the United States to match those paid by other developed countries. The order, announced on Monday, is designed to address the disparity in drug costs between the US and similar nations, with the intention of providing financial relief to American consumers and taxpayers.

According to Anadolu Agency, the executive order introduces several measures, including a "most favored nation" policy. While specific countries were not named, the initiative targets developed nations to ensure fair pricing. The order mandates the US Trade Representative and Secretary of Commerce to counteract foreign practices that contribute to inflated drug prices in the US market.

Additionally, the order requires Washington to set price targets for pharmaceutical manufacturers to ensure Americans receive the most competitive deals. Trump emphasized the goal of achieving the lowest possible drug prices during a press event, stating, "We are going to pay the lowest price there is in the world."

The mechanism introduced by the order allows US patients to purchase drugs directly from manufacturers at a "most favored nation" price, bypassing intermediaries. Should drug manufacturers fail to comply, the Secretary of Health and Human Services is instructed to propose rules enforcing such pricing and take measures to curb anticompetitive practices.

While the exact impact on drug prices remains uncertain, Trump suggested potential reductions of up to 59% or more on social media, with the possibility of prices falling as much as 80% or even 90% during the press event. The order seeks to address the long-standing issue of high drug costs in the US, exacerbated by the absence of a national healthcare provider.

Prior to Trump's decision, former President Joe Biden had brokered deals to lower prices on certain medications, such as those for diabetes, for American consumers.