Donald Trump announced a deal with AstraZeneca to lower prescription drug costs in exchange for relief from his threatened tariffs.
The agreement mirrors one reached with Pfizer last week. AstraZeneca will sell some medicines at discounted rates to the US Medicaid program, offering “most-favored-nation” pricing — matching the lowest prices offered in other developed nations.
“For many years, Americans have paid the highest prices in the world for prescription drugs,” Trump said. “This deal will bring them down to the lowest price anywhere in the world.”
AstraZeneca CEO Pascal Soriot, who joined Trump for the announcement, joked that the tough negotiations “really kept me up at night.”
The White House says the deal is part of its push to reduce medicine costs after Trump sent letters to 17 major pharmaceutical firms demanding price cuts.
More than 70 million low-income Americans rely on Medicaid, which already pays the lowest prices for drugs in the US. Economists say the impact may be modest. “I don’t think this will involve very big discounts,” said Craig Garthwaite of Northwestern University.
Experts also questioned Trump’s exaggerated claim that prices could drop by “up to 1,000%.” CNN’s Daniel Dale noted such a reduction would mean “people would be paid to take their medications.”
AstraZeneca’s deal may protect it from Trump’s threatened 100% tariffs on foreign-made drugs. But health policy analyst Rena Conti said the move is “good for the companies” and offers “uncertain if any benefit” for Americans struggling with drug costs.
