US President Donald Trump on Tuesday warned that pharmaceutical companies refusing to cut drug prices could face tariffs, as his administration pushes for “most favored nation pricing” to align domestic costs with those paid overseas.
The announcement came alongside confirmation that Pfizer has become the first major drugmaker to agree to lower prices on several of its medications in the United States. Pfizer’s commitment follows Trump’s July letters to 17 leading pharmaceutical firms, demanding binding agreements by September 29 to slash prices or risk punitive measures.
Trump said the deal with Pfizer marks a turning point in prescription drug costs, which have long been among the highest in the developed world. He added that his administration will continue talks with other companies, but tariffs remain on the table for those unwilling to comply.
The move signals a new phase in the White House’s confrontation with the pharmaceutical industry, blending direct negotiations with trade pressure in an effort to bring down healthcare costs for American consumers.