US secures Pfizer deal to cut drug prices, delay tariffs

October 01, 2025 (MLN): A three-year agreement between the Trump administration and Pfizer will delay planned tariffs on pharmaceutical imports while committing the company to lower drug prices in the United States.

Under the deal, Pfizer will adopt a “Most Favored Nation” pricing model for Medicaid, offering the same rates as the lowest available in other developed countries.

The White House also revealed the launch of a new platform, TrumpRx, designed to allow consumers to purchase certain medications directly from manufacturers at discounted prices.

According to Pfizer, a “large majority” of primary care treatments and select specialty drugs could see savings between 50% and 85%.

The company also pledged to invest $70 billion in reshoring U.S. manufacturing facilities, aligning with ongoing efforts to strengthen domestic production.

While the agreement is being hailed as a breakthrough on drug affordability, specifics remain unclear. Lawmakers, including Senator Bernie Sanders, have raised concerns that drug prices have continued to rise despite earlier pressure from the administration.

The declaration comes ahead of Trump’s threatened 100% tariffs on branded pharmaceuticals entering the U.S., scheduled for October 1 unless companies commit to building manufacturing plants domestically.

The long-term effect on commercial insurance markets and overall consumer drug costs is still uncertain.

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