Tariffs Slashed, Stocks Surge & Drug Prices Cut | 5.13.25

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What executive order did President Trump sign regarding prescription drug prices?

Georgia Howe 0:08
President Trump signs an executive order forcing big pharma to stop charging Americans more than their European counterparts.
Unidentified Speaker (Brief Interjection) 0:16
Will the sweeping order stand up to legal scrutiny and how will other nations respond?
Georgia Howe 0:20
I'm Georgia Howe with Daily Wire executive editor John Bickley. It's Tuesday, May 13th, and this is Morning Wire.
Unidentified Speaker (Brief Interjection) 0:34
Stocks surge after tariffs are slashed as the U.S. and China announce a truce in the trade war.
John Bickley 0:39
The negotiations are a combination of tariffs, non-tariff trade barriers, currency manipulation, and subsidies of labor and capital.
Georgia Howe 0:50
And Air Force One needs an update. Will Trump accept an offer of a $400 million flying palace from Qatar?
Donald Trump 0:57
They're giving us a free jet. I could say no, no, no. Or I could say thank you very much.
Unidentified Speaker (Brief Interjection) 1:03
Thanks for waking up with Morning Wire. Stay tuned. We have the news you need to know.
Brandon 1:11
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How will the new drug pricing order affect Americans and big pharma?

Unidentified Speaker (Brief Interjection) 1:47
President Trump signed what he called one of the most consequential executive orders in our country's history on Monday to dramatically lower the prices of prescription drugs.
Georgia Howe 1:56
Here to discuss is Daily Wire reporter Amanda Prestigiacomo. So Amanda, potentially a game-changing move here. What is the president intending to do with this order?
Amanda Prestigiacomo 2:05
Yeah, a lot of attention being paid to this order and for good reason. Trump said that he's going to lower drug prices in the U.S. by up to 80%. He's going to do that by implementing the most favored nation policy. He said he's going to cut out industry middlemen and he's basically going to tell the European Union and other allied nations that they need to pay more for research and development, which is also called R&D. Here's the president.
Donald Trump 2:28
We're subsidizing others' health care. Countries where they paid a small fraction of what for the same drug... that what we pay many, many times more for and will no longer tolerate profiteering and price gouging from big pharma. But again, it was really the countries that forced big pharma to do things that, frankly, I'm not sure they really felt comfortable doing.
Amanda Prestigiacomo 2:54
Now, specifically, this order is going to allow Americans to buy drugs directly from manufacturers, cutting out those middlemen. These so-called middlemen are PBMs or pharmacy benefit managers. They work with insurance providers to negotiate prices with drug companies in exchange for including those drugs in their coverage. Now, critics have said that PBMs are not transparent and they don't actually have incentive to lower prices for Americans. The order also sets a 30-day deadline for HHS to work with these drug makers to lower prescription drug costs. If a deal is not reached in time, a new rule is going to kick in that will effectively make these drugs the same price as other nations are paying for them.
Donald Trump 3:30
It's going to happen because the other countries have no choice. Now, the drug companies are going to have to say, listen, if you don't pay more, we're not going to give you the drug, and they're willing to do that. So that's it. We have to equalize.
Amanda Prestigiacomo 3:42
Trump was asked on Monday if this order now means that America is setting price controls. Here's how he responded.
Donald Trump 3:48
It's not price control. No, no. What was price control is before. If you want to talk about price control is what they were doing. They were making us pay. They set a price. And they said, here's what we're going to pay. And anything else, charge America. Because at that time, they had a very stupid president. And it really went crazy during the last four years.

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