Former President Donald Trump touted a big deal just like this one with the pharmaceutical giant AstraZeneca. This market-shaping deal is further proof of his administration’s commitment to lowering prescription drug costs for American families. The announcement occurred in the middle of an event in the Oval Office, where Trump hosted AstraZeneca CEO Pascal Soriot. This agreement follows closely on the heels of a similar arrangement with Pfizer. It demonstrates a serious intent to change how drugs are priced in the United States.
Trump’s plan includes a broader direct-to-consumer purchasing program that would allow pharmaceutical companies to sell their products at lower prices. He has asked his Secretary Kennedy to begin to start thinking about these programs. Each of these initiatives is a necessary step towards making affordable medications more accessible to Americans. The former president underscored that this collaboration is an essential piece of the puzzle within a broader strategy. He wants to get at these so-called “abusive drug pricing practices.”
Fortunately AstraZeneca has stepped up to provide a really exciting commitment under this new agreement. Additionally, they are establishing a multi-billion dollar drug substance manufacturing center in Virginia, to focus on chronic disease treatment drugs. With this investment, new jobs are projected to be created and it will have a positive impact on the local economy.
“This is another historic achievement in our quest to lower drug prices for all Americans,” – Donald Trump.
Along with the manufacturing agreement, Trump confirmed what has been a longstanding policy of his administration: He will tariff pharmaceuticals that come into this country from foreign countries. She said that these imports would be hit with a terribly high tariff, as much as 200 percent. Policy implications This action is further demonstration of Trump’s relentless weaponization of tariffs. He continues to depend on them to make sure foreign companies enforce U.S. policy.
“Now, I’m not sure that Pascal would like to say, but behind the scenes, he did say tariffs were a big reason he came here,” – Donald Trump.
The tariffs were to have been effective beginning October 1. They were delayed after Pfizer struck a deal with Trump’s administration on September 30. This push back allowed AstraZeneca to use their leverage during negotiation to secure the best possible terms and avoid high tariffs right away.
Throughout his administration, President Trump has been a steadfast champion of “most-favored nations prices.” He claims that this policy would ensure Americans pay the lowest prices possible, anywhere in the entire world. At his announcement, he was clearly excited about the savings consumers could expect.
“Americans can expect discounts, and as I said, it could be, in many cases, way over a hundred percent,” – Donald Trump.
Experts also point out that Trump has very ambitious plans for direct-to-consumer programs. He doesn’t have a legal stick to compel participation in them. Despite these shortcomings, the former president should still be proud that his administration’s initiatives should create meaningful, long-overdue change in the pharmaceutical industry.
AstraZeneca’s CEO Soriot thanked the company for this partnership, noting that stability in pricing and tariffs is necessary to drive innovation.
“We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry’s valuations to historic lows,” – Albert Bourla.
In early May, Trump signed an executive action. As a first step, he called on his administration to use “all necessary and appropriate action” against foreign nations that are causing drug prices to skyrocket in the U.S. This executive order provided the groundwork for future deals like it with the country’s largest drugmakers.
Robert F. Kennedy Jr. has been instrumental in fostering these agreements. He echoed this claim with an example of how Trump’s tactical implementation of tariffs provided him flexibility and bargaining power during negotiations with big pharma executives.
“The president saw something that we didn’t see, which is we had leverage, and that came through Howard [Lutnick] and the tariffs,” – Robert F Kennedy Jr.
