Donald Trump announced a new deal with AstraZeneca to lower prescription drug costs while granting the company tariff relief.
The British-based drugmaker agreed to sell several medicines to the U.S. Medicaid program at discounted “most-favored-nation” prices — matching the lowest rates offered in other developed nations.
The agreement mirrors one struck last week with Pfizer. Both are part of Trump’s broader push to pressure drug companies into cutting prices or face 100% tariffs.
“For many years, Americans have paid the highest prices in the world for prescription drugs,” Trump said in the Oval Office. “This deal could bring us the lowest price anywhere.”
AstraZeneca CEO Pascal Soriot, present at the announcement, said negotiations were tough and admitted the process “kept me up at night.”
Trump also claimed, falsely, that the deal could cut prices by up to 1,000%. Economists called the statement “nonsensical,” noting that even a 100% reduction would make drugs free, not profitable for buyers.
The deal primarily affects Medicaid, the program for low-income Americans, and includes discounted prices through a new “TrumpRx” website. Experts, however, say the savings for patients may be limited since Medicaid already pays among the lowest drug prices in the U.S.
Northwestern professor Craig Garthwaite said AstraZeneca’s current portfolio means “there aren’t many drugs where this would create a big discount.”
Boston University health economist Rena Conti called the deal “good for the companies” but doubted it would ease Americans’ rising drug and insurance costs.
Trump acknowledged that his tariff threats pushed AstraZeneca to the table, saying: “The tariffs were a big reason he came here.”
