Pfizer Agrees Trump Administration Historic U.S. Drug Pricing Deal

President Donald Trump announced a historic agreement with Pfizer to lower drug prices in the U.S. by matching the lowest prices offered in other developed nations, a move aimed at reducing the burden on Medicaid and uninsured patients. The deal also includes Pfizer's commitment to invest $70 billion in domestic manufacturing and research, aligning with Trump's broader strategy to bolster U.S. drug production and affordability. Pfizer will offer significant discounts on many primary care and specialty drugs through a direct purchasing platform called TrumpRx.gov, with savings averaging 50% and reaching as high as 85%. In exchange, Pfizer receives a three-year reprieve from tariffs related to the administration's Section 232 investigation into pharmaceutical costs as a national security concern. This agreement represents a key step in Trump's ongoing efforts to lower drug costs, utilizing leverage such as tariff threats to negotiate with pharmaceutical companies. The deal has sparked a positive market response, with Pfizer's stock rising amid the announcement.