Trump-Pfizer Deal Aims to Lower Drug Prices, Offer Tariff Relief
WASHINGTON — Pfizer and President Donald Trump unveiled a landmark agreement on September 30 aimed at bringing down U.S. prescription drug costs, especially for low-income Americans. In exchange for tariff relief, Pfizer has committed to implementing price cuts and policy changes tied to Medicaid and new drug launches.
Under the deal, Pfizer will reduce prices for many of its medications sold through Medicaid, matching prices in other high-income countries (known as “most-favored nation” pricing). The company will also commit to launching new drugs in the U.S. at prices no higher than those in peer nations.
In return, Pfizer receives a three-year exemption from newly announced tariffs on branded drug imports, provided it onshores the full value of its current pharmaceutical imports into the U.S.
The White House also revealed plans for TrumpRx, a government-run site launching in 2026 that will let consumers purchase select medications directly from manufacturers at discounted rates.
Investors cheered the announcement. Pfizer shares jumped more than 6%, while other pharma and healthcare stocks also rose on hopes additional drugmakers will reach similar deals.
Still, questions remain. It is unclear how deeply these discounts will affect insured patients or Medicare — areas not directly covered by the agreement. Some analysts see the deal as a template for negotiations with other pharmaceutical firms under mounting pressure from the administration.
