AstraZeneca has reached an agreement with Donald Trump’s administration to lower some US drug prices in exchange for tariff relief.
Announced from the Oval Office, the deal mirrors one struck with Pfizer last week and forms part of Trump’s plan to reduce prescription costs through “most-favored-nation” pricing.
Under the deal, AstraZeneca will sell certain medicines to Medicaid at the lowest prices offered in other developed countries. “For many years, Americans have paid the highest prices in the world,” Trump said. “This deal may cut prices to the lowest anywhere.”
The company’s CEO, Pascal Soriot, joined the president for the announcement, joking that the negotiations “really kept me up at night.”
More than 70 million Americans rely on Medicaid, but experts say the savings from AstraZeneca’s deal could be limited. “I don’t think there are many drugs where this involves a big discount,” said Craig Garthwaite of Northwestern University.
The president has been pressuring pharmaceutical companies to lower US prices or face 100% tariffs. AstraZeneca’s move, analysts say, likely protects it from those penalties.
Still, critics argue the plan won’t make a major difference for consumers. “It’s good for the companies,” said Boston University’s Rena Conti. “But it offers little real help for Americans struggling to afford their medications.”
