The order is based on a "most favored nation" pricing model, which is similar to a policy Trump pushed in his first administration.

Countries with universal healthcare systems have stronger bargaining power, which has allowed them to effectively negotiate lower drug prices.

The U.S. pays about three times more than other nations for drugs, and Trump's wide-reaching executive order directs pharmaceutical companies to charge similar prices in the U.S. and Europe. The order says its health department will establish a mechanism for patients to buy more drugs directly from manufacturers.