On September 30, 2025, President Trump announced a major deal with Pfizer. The company agreed to lower prices for Medicaid drugs to match those paid in other developed countries. In return, Pfizer will avoid a 100% tariff on imported branded drugs for three years.
Trump called the deal “a massive win for American families”. Pfizer CEO Albert Bourla stood beside him in the Oval Office. The agreement is part of Trump’s push to end what he calls “global price-gouging” in pharmaceuticals.
What the Deal Covers
Pfizer will offer most-favored-nation pricing on all new drugs launched in the U.S. That means Americans will pay no more than patients in countries like Canada, Germany, or Japan.
The company also committed to invest $70 billion in U.S. manufacturing and research. This investment helped secure a three-year grace period from Trump’s pharmaceutical tariffs.
Pfizer said the deal includes deep discounts on several high-cost medications:
- Xeljanz (rheumatoid arthritis): 40% off
- Zavzpret (migraines): 50% off
- Eucrisa (dermatitis): 80% off
- Duavee (osteoporosis): 85% off
These drugs will be available through a new federal website, TrumpRx.gov, launching in early 2026.
Why It Matters
Americans pay nearly three times more for prescription drugs than patients in other wealthy nations. Trump has long criticized this imbalance. He said, “The United States is done subsidizing the healthcare of the rest of the world.”
The deal aims to shift that burden. It also pressures other drugmakers to follow Pfizer’s lead. Trump sent letters to 17 pharmaceutical companies in July, demanding price cuts. Pfizer is the first to respond with a binding agreement.
Industry Reaction
Pfizer’s stock rose 6.3% after the announcement. Other companies—Eli Lilly, Merck, Amgen, AbbVie, GSK—also saw gains. Investors were relieved that the tariff threat might ease.
Still, some experts are cautious. “Medicaid already gets low prices,” said Darius Lakdawalla of USC. “It’s unclear how much this will help consumers directly.”
Peter Maybarduk of Public Citizen added, “We don’t know all the details. That’s by design.” His group filed a Freedom of Information Act request to uncover more.
TrumpRx Platform
The TrumpRx website will allow direct-to-consumer drug purchases. Patients can search for medications and buy them at discounted rates. The platform will feature drugs from Pfizer and other companies that join the program.
Health Secretary Robert F. Kennedy Jr. said the site will help uninsured and underinsured Americans. Trump added, “We’re making America healthy again.”
Tariff Pressure
Trump’s executive order in March 2025 revived the most-favored-nation policy. In September, he threatened a 100% tariff on imported branded drugs unless companies built U.S. manufacturing plants.
Pfizer’s deal avoids those tariffs. Bourla said, “The looming tariffs motivated us to act.” The company has nine U.S. manufacturing sites and 28 overseas.
Other companies, including AstraZeneca and Eli Lilly, are now considering similar moves to boost domestic production.
What Comes Next
The TrumpRx rollout begins in January 2026. Medicaid patients will see lower prices first. Medicare and commercial payers may follow.
Trump said he expects more deals within weeks. “If we don’t make a deal, we’re going to tariff them,” he warned.The White House says the program could save hundreds of millions of dollars annually. Critics say the real impact depends on transparency and enforcement.
