AstraZeneca has reached a deal with Donald Trump’s administration to lower drug prices in exchange for tariff relief.
The British pharmaceutical company agreed to sell several medicines at discounted rates to the US Medicaid program, which covers low-income Americans. In return, the White House will lift planned tariffs on the company’s products.
Trump announced the agreement from the Oval Office, calling it part of his “most-favored-nation” pricing plan. “Americans have paid the highest prices in the world for prescription drugs,” he said. “That ends now.”
AstraZeneca’s CEO, Pascal Soriot, said negotiations with the administration were “tough” but necessary. The company will match the lowest prices it offers in other developed nations for Medicaid and new drug launches.
The deal mirrors one reached with Pfizer last week. Trump has sent letters to 17 major drugmakers demanding price cuts or face tariffs of up to 100%.
Health experts said the real impact may be limited. Medicaid already receives the lowest drug prices in the US, and AstraZeneca’s portfolio may not yield major additional discounts.
“It’s good for the companies, but uncertain if it helps Americans struggling with high drug costs,” said Rena Conti of Boston University.
Despite Trump’s exaggerated claims that prices would fall by “up to 1,000%,” economists called the statement “not logical.” Still, the deal marks a symbolic win for the administration ahead of looming tariff threats and growing political pressure over prescription drug costs.
