President Trump has secured an agreement with Pfizer to lower drug prices for Medicaid patients, linking U.S. prices to those abroad.

On September 30, 2025, President Trump announced a significant agreement with Pfizer aimed at lowering drug prices for Medicaid patients. The deal introduces a 'most-favored-nation' pricing model, allowing Pfizer to sell existing medications at the lowest prices available in other developed countries. As part of the agreement, Pfizer will also invest $70 billion in U.S. manufacturing and research facilities. The company plans to offer discounts of up to 85% on various medications, including treatments for migraines and rheumatoid arthritis, through a new website called TrumpRx.gov. This initiative is part of Trump's broader strategy to link U.S. drug prices to those abroad and avoid imposing tariffs on pharmaceutical imports, provided companies invest in domestic production. The announcement has led to a rise in Pfizer's stock and is seen as a potential model for future agreements with other drug manufacturers.