Australia’s worst fears confirmed as latest Trump executive order sends shockwaves around the world – here’s how it could cost you

The price of medicines in Australia could rise after Donald Trump’s announcement that he will sign an executive order aimed at slashing drug prices in the United States.

Trump says he will sign the order at 9am Monday from the White House, claiming it will reduce U.S. drug prices by between 30 to 80 per cent ‘almost immediately.’

Posting to Truth Social, Trump wrote that prices would ‘rise throughout the World in order to equalise and, for the first time in many years, bring FAIRNESS TO AMERICA!’

The order is already being described by supporters as ‘one of the most consequential Executive Orders in our country’s history,’ though full details remain unclear.  

The move is raising concerns globally, including in Australia, about how it could impact local drug pricing.

Jared Mondschein, who is the research director at the United States Studies Centre at the University of Sydney, says the announcement is no surprise. 

‘It’s no surprise that the White House has finally moved on the issue of U.S. drug prices,’ he said. 

‘What’s surprising is that it took them 100 days to act. Americans pay three to four times more for prescription drugs than people in other countries. 

President Trump (pictured) says his plan will cut US drug prices by 30 – 80 per cent

‘One of the main reasons Donald Trump gained traction in the first place was because voters were frustrated with the high cost of healthcare and medications.’

Mr Mondschein warns the move could lead to higher drug prices in other countries, including Australia, as pharmaceutical companies seek to balance the global market.

‘It doesn’t take much digging to see that Americans have effectively been subsidising the development of cutting-edge pharmaceuticals for the rest of the world,’ he said.

‘It’s not that Americans don’t want to see innovation continue, they just want other countries to start paying their fair share.’

He compared the move to Trump’s previous trade tactics.

‘Just as Trump’s tariffs pushed nations to rethink supply chains, and rising global tensions have driven up defence budgets, countries must now also ramp up their health investment,’ Mr Mondschein said.

He warned nations could be left behind if they weren’t willing to pay more.

‘The reality is, if a country won’t meet a sustainable price point, it may simply be excluded from the latest treatments,’ Mr Mondschein said.

He also warned this approach is not exclusive to Trump or Republicans. 

The move is expected to have global impacts, which could see prices in Australia go up (stock image)

‘Some might view this as a uniquely Trump-style announcement,’ Mr Mondschein said. 

‘But it’s worth noting what the Biden administration has actually done. Things are shifting.’

He pointed to the Biden administration’s move to cap the cost of insulin at $35, cutting prices by around 70 per cent.

‘At the end of the day, Americans still pay more for healthcare and insurance than anyone else, without necessarily receiving better care,’ Mr Mondschein said.

‘Maintaining that status quo is politically untenable.’

Mr Mondschein said it remains to be seen what the new executive order will actually contain.

‘The real question now is how this reform will be implemented,’ he said. 

‘Trump talked about cutting drug prices during his first term, but wasn’t able to get it done. 

The full details of the plan are yet to be revealed (stock image)

‘The devil, as always, is in the details—but the political pressure to act is undeniable.’

Trump’s announcement sparked a flurry of responses on social media with Aussies slamming the insane costs in the US healthcare system.

‘As a type 1 diabetic, the price they pay in the US for insulin has made me sick, as so many just couldn’t afford this lifesaving med, it’s criminal!’ one wrote. 

‘Even if Trump manages to reduce prices by 80 per cent like he claims, they’ll still being paying USD $20 or more!’ another added.