Trump Strikes Deal With AstraZeneca to Cut U.S. Drug Prices
Washington — The Trump administration announced Friday that it has reached a landmark agreement with AstraZeneca to lower the cost of prescription drugs in the United States, expanding the administration’s push to pressure pharmaceutical companies into offering “most-favored nation” pricing.
The deal mirrors a similar pact reached with Pfizer last month and marks another major win for President Trump’s long-running campaign to reduce U.S. drug prices — a key issue heading into the final stretch of 2025.
‘Most-Favored Nation’ Pricing for Medicaid Patients
Under the new arrangement, the U.K.-based pharmaceutical giant will sell its drugs directly to Medicaid patients at the lowest price offered in other developed nations.
The discounted medicines will be available early next year through a new government platform, TrumpRx.gov, according to Centers for Medicare & Medicaid Services Administrator Mehmet Oz.
“AstraZeneca’s primary care medications will be available on the site starting early next year, and new prescription drugs will be offered at most-favored nation pricing,” Oz said.
This means U.S. Medicaid patients could soon pay the same—or even less—than patients in countries such as Germany, France, or Canada for several high-demand treatments.
AstraZeneca Wins Tariff Exemptions
In exchange for its pricing concessions, AstraZeneca will be exempted from U.S. pharmaceutical sector tariffs, a key incentive also extended to Pfizer in its earlier deal.
“We are pleased to reach an agreement that allows us to continue investing in the U.S. while ensuring affordable access to our medicines,” said AstraZeneca CEO Pascal Soriot, who appeared alongside President Donald Trump at the White House announcement.
The British drugmaker previously pledged to invest $50 billion in the U.S. by 2030, including in manufacturing and research facilities. On Friday, the company confirmed those plans will move forward as part of the broader trade and pricing arrangement.
White House: ‘Tariffs Worked’
During the announcement, Trump credited his tariff threats with bringing pharmaceutical companies to the negotiating table.
“Most of them are here because of tariffs,” Trump said. “We made it clear that if they wanted to avoid higher costs, they had to bring jobs and fair prices back to America.”
The administration has floated tariffs as high as 250% on imported pharmaceuticals in recent months, prompting several major drugmakers to commit to new U.S. investments.
More Drugmakers Could Follow
Trump said Friday that additional agreements with other pharmaceutical firms are in progress and could be finalized “in the coming weeks.”
The new TrumpRx.gov program is designed to act as a public pricing platform, allowing patients to compare costs across drugmakers and access discounted medications directly — a move the White House says will boost transparency and competition.
The deal, first reported by MSNBC, marks one of the most significant steps yet in Trump’s broader “America First Medicine” initiative, which seeks to repatriate drug production and slash consumer prices without traditional price controls.
