US President Donald Trump signed an executive order on Tuesday to lower drug prices by allowing states to negotiate more freely overseas and streamlining the price negotiating process.

This move addresses the issue that Americans have the highest prescription drug prices in the world, often leading consumers to pay a significant portion of their medical costs out of pocket, despite having high insurance premiums, CNN reported.

A White House official stated, "This executive order will deliver significant relief to seniors and low-income individuals who rely on essential medications, such as insulin, among many others."

The official also emphasized that the purpose of the initiative is to make the prescription drug market more competitive so that consumers and the government pay prices that accurately reflect the value of these drugs rather than being impacted by complicated government payment strategies.