Pfizer Strikes Deal with Trump Administration to Cut Drug Prices Through New Federal Website
Trump’s latest statement on imposing a 100% tariff on branded and patented foreign drugs, which will start from October 1.
Pfizer did not just pledge to deliver drugs at reduced prices via the new platform but has also promised lowering the cost of prescriptions under Medicaid. Photo/ Courtesy
By Juliet Jerotich
The Trump administration unveiled a new partnership with drugmaker Pfizer that will allow American patients to buy prescription medication for less on a federally run website to be unveiled shortly. The initiative, dubbed TrumpRx, will establish direct-to-consumer access for discounted medications with as much as 85% discounts.
Under the deal, as per the Tuesday White House announcement, this will be a significant move in President Donald Trump‘s continuing campaign to lower America’s drug prices. Pfizer did not just pledge to deliver drugs at reduced prices via the new platform but has also promised lowering the cost of prescriptions under Medicaid, the national health care system that covers low-income citizens. In return, the company will be spared from paying newly imposed tariffs on branded drugs.
This follows Trump’s latest statement on imposing a 100% tariff on branded and patented foreign drugs, which will start from October 1. The president had already sent letters to 17 major drugmakers last summer, threatening them with an ultimatum within 60 days so that they would have time to develop plans for lowering their prices. Pfizer is the first company to agree before the deadline.
Referring to reporters at the press event, Trump emphasized that the deal aligns with the “most-favoured nations” policy of the administration, aiming to keep Americans paying no more for drugs than any other advanced country. Trump reiterated that Pfizer’s commitment to making all its brand-name medicines available to Medicaid under these globally benchmarked prices would significantly ease the burden on the healthcare budget of the federal government. He also indicated that there would be additional deals with other pharmaceutical firms.
Pfizer announced that most of its main primary care medicines would be made for TrumpRx, but refused to disclose which drugs would be part of the deal. The firm also stated that it would invest $70 billion in U.S.-based research centers, development labs, and production plants, framing the agreement as a fiscal and strategic achievement. Chief Executive Albert Bourla stated that the deal provided the company “certainty and stability” on two issues of tariffs and pricing, which were already creating market uncertainty.
The report sent Pfizer’s stock soaring nearly 7% on Tuesday, reflecting investors’ enthusiasm for the deal. Trump did say, however, that his policies could drive up the price of medicine overseas, as companies such as Eli Lilly have already said they plan to raise European drug prices in order to offset a reduction in US prices.
Although the TrumpRx website is scheduled to launch in early 2026, experts caution that it is unclear how much the average American consumer will really save. Insurance carriers, middlemen known as wholesalers and pharmacy benefit managers still play a big role in determining out-of-pocket expenses, or what the ultimate impact of the program will be.
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