AstraZeneca has reached a deal with Donald Trump’s administration to lower some US drug prices in exchange for tariff relief.
The British-based company will offer discounted medicines to Medicaid, the federal health plan for low-income Americans, mirroring a similar deal made with Pfizer last week.
Announcing the agreement in the Oval Office, Trump said AstraZeneca had accepted a “most-favored-nation” pricing model, meaning its US prices would match the lowest rates offered in other developed countries.
“For many years, Americans have paid the highest drug prices in the world,” Trump said. “This deal will bring prices down to the lowest anywhere.”
AstraZeneca CEO Pascal Soriot, present for the announcement, said the negotiations “really kept me up at night.” Trump joked that the deal would have been done sooner “if not for a rigged election.”
The agreement includes discounts for Medicaid and a new “TrumpRx” website aimed at offering lower prices to consumers. However, experts cautioned that the impact may be limited.
“Medicaid already gets the lowest prices,” said Craig Garthwaite of Northwestern University. “I don’t think AstraZeneca’s portfolio involves major additional discounts.”
Health economist Rena Conti added: “It’s good for the companies, but the benefit for Americans struggling with drug costs is uncertain.”
Trump has repeatedly threatened 100% tariffs on pharmaceutical imports unless companies cut prices or shift manufacturing to the US — pressure that helped push AstraZeneca to the table.
