AstraZeneca has reached a deal with the Trump administration to lower drug prices and avoid steep tariffs, marking the second such agreement between the White House and a major pharmaceutical company.
Under the deal, the British-based drugmaker will sell some medicines at discounted “most-favored-nation” prices to Medicaid, matching the lowest prices offered in other developed countries. In exchange, the company will receive tariff relief.
Announcing the agreement from the Oval Office, Donald Trump said the plan would “make prescription drugs the cheapest in the world,” adding that the deal “could save Americans billions.”
AstraZeneca’s CEO Pascal Soriot, who joined Trump for the announcement, described the negotiations as “tough” but said the outcome was “good for patients and for business.”
The new model mirrors a recent deal with Pfizer and is part of Trump’s broader effort to pressure drugmakers to reduce costs or face 100% tariffs on imports.
More than 70 million Americans rely on Medicaid, which already secures lower drug prices than most programs, meaning the added savings may be limited. “It’s unlikely to have a big impact,” said Craig Garthwaite of Northwestern University.
Health policy experts warned that while the move may ease tariff tensions, it does little to tackle high insurance premiums or out-of-pocket costs. “It’s good for companies,” said Rena Conti of Boston University, “but offers uncertain benefits for Americans struggling to afford their medications.”
