Berliner Boersenzeitung - Trump’s Crackdown: Lives/Risk

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Trump’s Crackdown: Lives/Risk




In a dramatic push to tackle the skyrocketing cost of prescription drugs in the United States, President Donald Trump has taken decisive action against the pharmaceutical industry. With the stroke of a pen, he signed an executive order designed to slash drug prices, promising relief for millions of Americans burdened by exorbitant healthcare costs. However, this bold move has sparked fierce debate, with critics warning that the consequences could be catastrophic—potentially costing millions of lives due to drug shortages and stifled innovation.

Trump’s Plan to Lower Drug Prices
The executive order, enacted on May 12, 2025, seeks to align U.S. drug prices with those in other developed nations, where medications often cost a fraction of what Americans pay. Trump has long criticized the pharmaceutical industry for what he calls unfair pricing practices, arguing that U.S. consumers have been overcharged for years. The order aims to reduce prices by 30% to 80%, targeting both brand-name and generic drugs. It relies on voluntary compliance from drug companies, with the threat of future regulations looming if they fail to cooperate. For many patients, this could mean significant savings on medications that currently drain their finances.

The Dark Side: Drug Shortages Loom
While the goal of affordability is laudable, the plan has raised red flags among healthcare experts and industry leaders. One major concern is the risk of drug shortages. The U.S. already faces periodic shortages of critical medications, such as those used in cancer treatments and epidurals. Forcing pharmaceutical companies to lower prices could make it unprofitable to produce certain drugs, particularly low-cost generics. If production slows or stops, hospitals and pharmacies could struggle to secure enough supply, leaving patients without access to life-saving treatments. The ripple effect could be devastating, especially for vulnerable populations like cancer patients and the elderly.

A Blow to Innovation
Beyond immediate supply issues, the executive order could deal a severe blow to pharmaceutical innovation. Developing new drugs is an expensive and risky endeavor, often costing billions of dollars and taking years of research. The U.S. market, with its higher drug prices, has long been a key source of revenue for this work. If that revenue shrinks, companies may cut back on research and development, slowing the creation of new treatments for diseases like Alzheimer’s, cancer, and rare genetic disorders. A healthcare economist recently cautioned that such a move could “delay breakthroughs that millions of patients are counting on,” trading short-term savings for long-term losses in medical progress.

Economic Fallout
The economic implications are equally troubling. The pharmaceutical industry employs thousands of Americans and drives significant investment in the U.S. economy. Lower prices could lead to job cuts and reduced funding for new projects. One major drug company has already hinted at rethinking its $50 billion investment in the U.S. if the order takes full effect. While consumers might save money at the pharmacy, the broader economy could suffer as a result.

The Case for Change
Despite these risks, supporters argue that action is overdue. Prescription drug prices in the U.S. are nearly three times higher than in other advanced countries, forcing many Americans to ration their medications or skip doses entirely. Lowering prices could save billions of dollars and improve access for those with chronic conditions like diabetes or heart disease. For these patients, Trump’s order represents a lifeline—a chance to afford the drugs they need to survive.

A High-Stakes Gamble
As the dust settles, the debate rages on. Will Trump’s crackdown on the pharmaceutical industry deliver on its promise of affordable healthcare, or will it unleash a cascade of unintended consequences? The order’s success hinges on cooperation from an industry reluctant to sacrifice profits, and its failure could leave patients paying the ultimate price. For now, the nation watches as this high-stakes gamble unfolds, with millions of lives in the balance.