AstraZeneca has reached a deal with Donald Trump’s administration to lower prices for some of its medicines in exchange for tariff relief.
The British drugmaker will sell certain drugs at discounted rates to the U.S. government’s Medicaid program, adopting a “most-favored-nation” model that matches the lowest prices offered in other developed countries.
Trump announced the agreement from the Oval Office on Friday, saying it would help make prescription drugs “the lowest price anywhere in the world.” AstraZeneca’s CEO, Pascal Soriot, who attended the event, described the negotiations as “tough” and said the talks “kept me up at night.”
The deal mirrors one reached last week with Pfizer. Both companies were among 17 pharmaceutical firms Trump warned to slash prices or face steep import tariffs.
Under the agreement, AstraZeneca will extend price guarantees on new medicines and offer additional discounts through a “TrumpRx” website. In return, the company will avoid the 100% tariffs Trump recently threatened on foreign drugmakers.
Experts, however, warned that the impact on ordinary Americans would likely be small. Medicaid already pays among the lowest drug prices in the U.S., said Craig Garthwaite of Northwestern University. “I don’t think there are a bunch of drugs where AstraZeneca will be giving a very big discount,” he said.
Health economist Rena Conti of Boston University added: “It’s good for the companies, but has very uncertain, if any, benefit for Americans struggling with prescription drug costs.”
Despite the fanfare, analysts noted that the deal will not significantly affect overall health insurance premiums or out-of-pocket drug expenses — even as Trump hailed it as a “historic win for the American people.”
