President Trump just wrangled a herd of pharmaceutical big wigs and convinced them to lower drug prices. He needs to do the same with America’s grocers.
Nine major pharmaceutical companies agreed to lower prescription drug prices for Americans in line with the lowest prices paid by other developed nations (known as the most-favored-nation or MFN, price.
These include Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi.
President Trump says the result of this agreement will be to reduce prices on drugs treating many costly and chronic conditions, including type two diabetes, rheumatoid arthritis, multiple sclerosis, asthma, chronic obstructive pulmonary disease (COPD), hepatitis B and C, human immunodeficiency virus (HIV), and certain cancers, among others.
He also set up a website, Trump Rx dot gov (which he swears someone else named) where Americans can view price reductions and purchase drugs directly.
The agreement with the group I’ll call The Gang of Nine was aligned with the President choosing December to launch the start of the midterm campaign for Republicans with the theme of fixing the economy - or at least showing people what he’s fixed to date.
Here’s some of what’s fixed according to a White House report:
“The era of inflation is over. The latest data shows the rate of inflation down about 70% from its Biden-era peak. In fact, if the pace of the past two months were to continue, inflation would be running at only 1.2% — far below the Fed’s 2% target.
“Prices are moderating. Over the last two months, prices for groceries, dairy, fruits and vegetables, toys, prescription drugs, clothing, airfares, natural gas, car and truck rentals, and hotels all declined as average gas prices plummet to multi-year lows. Moreover, rent inflation is at its lowest since October 2021 as illegals no longer drive-up housing costs.
“Wages are up. Private sector workers are on track to see their real wages rise by $1,300…”
So while Trump is making it cheaper to drive to the grocery store on gasoline well below three bucks a gallon, can those same Americans feed a family of four with the current state of grocery prices?
No. Many prices are down. But many are not. While Trump has fixed a lot there are things that need doing. While the economy is improving it doesn’t happen overnight. He’s going to need much more to happen very quickly in time for the midterms because if he loses the House, he loses everything. A Democrat-run House simply would not look at any Trump or Republican legislation. That would mean two years of bickering, stalling and probably impeachments as Democrats continue to do everything in their power to demonize Trump. Yes. Another Do-Nothing-Congress. (Note the initials spell DNC).
One of the things Trump did not mention during an address to the nation, and it surprised me. He has not yet attempted to use the sheer weight of the presidency - including his charisma and his amazing power is a negotiator - to lower food prices. While many grocery prices are down, some prices have continued to rise, notably beef, orange juice, and coffee. Some news reports indicate these prices are influenced by factors such as climate issues, supply chains and tariffs.
A grocer’s coalition, triggered by Trump, could lead to greater improvements in the prices of the groceries Americans need most.
Early in December, the President signed an Executive Order to stop price fixing, anti-competitive behavior, and foreign influence that drives up grocery prices and threatens the security of America’s food supply. This could be the stick. A Trump grocer’s coalition could be the carrot.
Here’s why and how:
A full 70% of the groceries sold in this country are sold by five organizations. That means five CEOs that could be seated at a small table in the White House. Trump should invite them all for a talk. Maybe put out a luncheon spread with grocery items that have gone own in price and empty serving dishes labeled with the food items that have stayed at high levels or gone up. A life-like display of what foods Americans can afford to eat - and what they cannot.
If I were Dictator for a Day, I’d have President Trump tout a grocery bill of basics - a basic basket that contains essential foods needed by every family at affordable prices. Guess what? The list is already made up! Grocers could use the USDA’s “Thrifty Food Plan” — essentially, reasonably healthy meals cooked at home for a family of four on a tight budget. In 2021 that food basket for a week cost $200. Today the same food costs $235.
Don’t tell me the majority grocers of America could not afford to make these items loss-leaders if they could at least not break even.
GROCERY PROFITS
as GATHERED AND REPORTED BY ChatGBT:
Most Recent Annual Net Profit
Walmart ~ $15.5 B (2024); ~ $19.4 B (2025 est.) (MacroTrends)
Kroger ~ $2.16 B (2024) (MacroTrends)
Costco ~ $7.37 B (2024); ~ $8.10 B (2025) (MacroTrends)
Amazon ~ $59.2 B (2024) (ir.aboutamazon.com)
Aldi Not publicly available (private company)
Grocers would only have to lower a typical no-frill food basket of basics by $35. That’s the difference in cost between the 2021 basket and the 2025 version.
My message to the grocery kingpins: Such a program still allows you guys to make tons of profit because everybody’s going to buy more and it’s good for the American people. It’s also good for the Republican Party. It’s also good for conservatives in the midterm.
I’m sure President Trump could improve on this message behind closed doors with the heads of Walmart, Kroger, Costco, Amazon and Aldi.
Or I’m not a Dictator for a Day.
What do you think? Leave your comments below.
Richard, Thanks for the restack!
Thank you, I might!