US President Donald Trump has made a deal with Pfizer that could make it easier for other pharmaceutical companies to avoid tariffs. The agreement, which includes a three-year exemption from pharmaceutical-specific tariffs, also requires Pfizer to invest $70 billion in US manufacturing and research.
The deal brings relief to Pfizer and the broader pharmaceutical industry, suggesting that many drugmakers may strike similar agreements to avoid the levies. Commerce Secretary Howard Lutnick has said he will let companies finish their negotiations with the administration before setting tariffs under Section 232.
Trump is working on securing deals with other major pharmaceutical companies, including Eli Lilly. The agreement could shift the president’s policies “potentially away from Pharma tariffs,” according to analyst Evan Seigerman.
The deal also addresses the issue of most-favored-nation pricing for Medicaid patients. Pfizer has agreed to sell its existing drugs at the lowest price offered in other developed nations, which is expected to have a limited impact.
The agreement suggests that Trump’s policies on pharmaceuticals may be more manageable than initially thought, with many drugmakers already investing heavily in US manufacturing and research.
Source: https://www.cnbc.com/2025/10/01/trump-pharmaceutical-tariffs-pfizer-deal.html