In his first major action on health care costs this term, President Donald Trump issued a multi-part executive order on Tuesday aimed at lowering drug prices and reducing costs for Medicare. The move comes as his administration seeks to impose tariffs on pharmaceutical imports that many experts have said could lead to drug shortages and price hikes.

The action is intended to build upon the existing program for Medicare drug price negotiations, which was created by the Inflation Reduction Act that passed during the Biden administration.

President Donald Trump has ordered the Department of Health and Human Services to standardize Medicare payments in an effort to curb prescription drug prices, including with private insurers.