Business
Trump, Pfizer agree to lower U.S. drug prices, exempt company from pharma tariffs
U.S. President Donald Trump announces a deal with Pfizer to lower Medicaid drug prices in the Oval Office of the White House on Sept. 30, 2025 in Washington, DC.
Win McNamee | Getty Images
President Donald Trump on Tuesday announced an agreement with Pfizer to voluntarily sell its medications for less, as his administration pushes to link U.S. drug prices to cheaper ones abroad.
Pfizer has agreed to take measures to reduce U.S. drug prices, including selling its existing drugs to Medicaid patients at the lowest price offered in other developed nations, or what Trump calls the most-favored-nation price, according to the president. Pfizer will also guarantee the same “most-favored-nation” pricing on its new drugs for Medicare, Medicaid and commercial payers.
As part of the deal, Pfizer has also agreed to a three-year grace period during which the company’s products won’t face pharmaceutical-specific tariffs – as long as the drugmaker further invests in U.S. manufacturing. The company plans to invest $70 billion to reshore domestic drug manufacturing and research facilities.
Shares of Pfizer rose more than 4% on Tuesday after the announcement.
“Pfizer has agreed to provide some of the most popular current medications to our consumers at heavily discounted prices anywhere between 50% and even 100%,” Trump said, adding that those drugs will be available for direct purchase at a discount online on a website the administration is calling TrumpRx.gov.
Trump said he’s working with other drugmakers to secure similar agreements over the next week, adding that Pfizer is the first.
“If we don’t make a deal, we’re going to tariff them,” he said of the other companies’ drugs.
The White House confirmed with CNBC’s Eamon Javers that Eli Lilly is in negotiations with Trump for the next drug pricing deal, without providing further details on how far along talks are.
The deal comes as Pfizer and 16 other drugmakers face Trump’s Monday deadline to take steps to lower drug prices, as outlined in letters from the president. Trump in May signed an executive order reviving a controversial plan, the “most favored nation” policy, that aims to tie the prices of some medicines in the U.S. to the significantly lower ones abroad.
During the press conference, Pfizer CEO Albert Bourla said the company satisfied all four of the requests Trump outlined in his letter. Among the other steps is pursuing tougher price negotiations abroad and adopting models that sell its medicines directly to consumers or businesses.
“The big winner clearly will be the American patients, there is no doubt,” Bourla said. “They are the ones that will see a significant impact on their ability to buy medicines.” But he said “American innovation and and the American economy” will also be “winners” with the agreement.
Pfizer’s discounted drugs
Pfizer said it will offer a large share of its primacy care treatments and certain specialty branded drugs at discounts of 50% on average and up to 85%, according to a release from the company.
In a separate statement Tuesday, Pfizer said more than 100 million patients are impacted by diseases those medicines treat, such as migraines, rheumatoid arthritis, menopause and atopic dermatitis.
The company provided examples of discounted drugs under TrumpRx.gov. Duavee, a treatment for certain menopause symptoms, will be available for as little as $30 on the site, which is an 85% discount to its current price.
Patients will also be able to pay as low as $162 – an 80% reduction to the current price – for prescription ointment Eucrisa, which is used to treat mild-to-moderate eczema. Tovias, a medication for overactive bladder, will also be available on TrumpRx.gov for as little as $42, which is a 85% discount to the current price.
Pfizer said it also plans to offer products such as Abrilada for autoimmune diseases at a 60% discount, Xeljanz for rheumatoid arthritis at a 40% discount and the migraine drug Zazvpret at 50% discount.
Those drugs don’t appear to be significant revenue drivers for Pfizer. The company’s quarterly and full-year earnings reports only include product-specific revenue for Xeljanz, which generated $349 million in worldwide sales in 2024. Sales of the drug fell 29% operationally from 2023, primarily due to lower demand globally as well as lower net prices in the U.S.
The deal comes as drugmakers brace for Trump’s planned tariffs on pharmaceuticals imported into the country. Trump said in a Truth Social post Thursday that the U.S. will impose a 100% tariff on “any branded or patented Pharmaceutical Product” entering the country from Oct. 1.
The measure will not apply to companies building drug manufacturing plants in the U.S., Trump said. He added that the exemption covers projects where construction has started, including sites that have broken ground or are under construction.
In a note on Tuesday, BMO Capital Markets analyst Evan Seigerman said the deal is positive for Pfizer’s stock and the broader pharmaceutical sector, as it “adds certainty and shifts POTUS policies potentially away from Pharma tariffs.”
“Today’s deal seems to set a path for other pharmaceutical players to follow, allowing for headline pricing concessions and a Trump ‘win’ without more punitive implementation” of the most favored nation policy or tariffs, he added.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has departed for the United States to participate in the annual meetings of the International Monetary Fund (IMF) and the World Bank.
According to a statement issued by the Ministry of Finance in Islamabad on Saturday, the minister will represent Pakistan at the plenary sessions of both institutions.
During his six-day visit, Senator Aurangzeb is scheduled to hold meetings with senior officials of the IMF, World Bank, International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).
He will also hold a one-on-one meeting with World Bank President Ajay Banga and attend a dinner hosted by him for finance ministers of selected countries.
Additionally, the minister will meet IMF Managing Director Kristalina Georgieva during sessions of the G24 and MENAP (Middle East, North Africa, and Pakistan) groups, where he is expected to deliver a keynote address.
Aurangzeb will also participate in a World Bank regional roundtable on the digital transformation of the Federal Board of Revenue (FBR), alongside tax authorities from other nations.
Moreover, he will attend two major events hosted by the World Economic Forum (WEF) and hold bilateral meetings with finance ministers from China, the United Kingdom, Saudi Arabia, Türkiye, and Azerbaijan.
The finance minister’s schedule also includes meetings with senior White House officials, the Chairman of the U.S. Congress Financial Services Committee, and representatives from the U.S. State and Treasury Departments and the International Development Finance Corporation (DFC).
He will engage with office bearers and members of the U.S.-Pakistan Business Council to discuss tax proposals and investment opportunities in Pakistan.
The minister will also meet with representatives of global credit rating agencies, commercial banks particularly investment banks from the Middle East and address various investment forums and seminars to highlight Pakistan’s economic outlook.
Aurangzeb will visit leading U.S. think tanks, including the Atlantic Council and the Peterson Institute for International Economics (PIIE), and meet prominent members of the Pakistani community.
He will also give interviews to selected international and American media outlets during his visit, which includes over 65 events, forums, meetings, and official engagements.
Business
Trump’s 100% tariffs on China: For India, the message is clear – No deal with US is ever final, says GTRI – The Times of India
India should be careful in its negotiations with the US and should focus on its self-reliance rather than depending on Washington, Global Trade Research Institute (GTRI) said in a report. In a report titled “Trump’s tariff offensive hits a rare earth wall,” the think tank analysed the impact of Trump’s recently imposed tariffs on China and how India should proceed.
The US President Donald Trump on Friday announced an additional 100% tariff on Chinese imports, raising total US duties to around 130%, which will be in effect from November 1. The action is one of the most major escalations in US-China trade tensions since the 2018 tariff war. Washington’s move responds to China’s stringent restrictions on rare-earth exports, which are vital for the US defence, clean-energy, and technology sectors.‘The message is clear’: Lessons for IndiaThe report said that India should advance its negotiations with the US cautiously and on “equal terms,” warning that “no deal with the US is ever final.”It suggested ensuring reciprocity and safeguarding strategic autonomy. The GTRI report also said that instead of depending on “shifting US promises,” New Delhi should prioritise self-reliance in critical technologies and minerals, shielding its economy from future trade shocks. The country should also use its neutral stance to strengthen ties with both Western and BRICS nations.ImpactPrices of electric vehicles, wind turbines and semiconductor parts are expected to rise as China and the US get embroiled in a new series of trade tensions.The report further noted that if Washington seeks support from its allies, costs could rise further, as they can’t quickly match China’s dominance in rare-earth minerals.Analysing the impact, think tank GTRI said, “The impact will be felt quickly. Prices of EVs, wind turbines, and semiconductor parts are expected to rise, while the US will try to “friend-shore” its mineral supply chains to Australia, Vietnam, and Canada. China, meanwhile, is likely to redirect supplies toward its non-Western partners to strengthen alternative industrial networks.”Washington may feel the heat tooWashington is still heavily reliant on Beijing for its electronic, textile, footwear, white goods and solar panels, some areas where China could strike back.Once the new tariffs take effect, prices might surge making it difficult for the Trump administration to handle the inflation and production costs. Hence, the US President’s “tough-on-China” approach could backfire, potentially raising costs for American consumers and weakening his wider economic agenda.‘China appears better prepared’Given the importance of rare earths to US industries, Washington may soon have little choice but to negotiate a new deal with Beijing. “Unlike the US, which often acts before weighing economic consequences, China appears more deliberate and better prepared,” the GTRI said.
Suranjana TewariAsia business correspondent, Tokyo and
Peter HoskinsBusiness reporter
ReutersOnly four bottles of Asahi Super Dry beer are left on the shelves of Ben Thai, a cosy restaurant in the Tokyo suburb of Sengawacho.
Its owner, Sakaolath Sugizaki, expects to get a few more soon, but she says her supplier is keeping the bulk of its stock for bigger customers.
That’s because Asahi, the maker of Japan’s best-selling beer, was forced to halt production at most of its 30 factories in the country at the end of last month after being hit by a cyber-attack.
While all of its facilities in Japan – including six breweries – have now partially reopened, its computer systems are still down.
That means it has to process orders and shipments manually – using pen, paper and fax machines – resulting in much fewer shipments than before the attack.
Asahi accounts for about 40% of Japan’s beer market, so its problems are having a major impact on bars, restaurants and retailers.
The company has apologised “for any difficulties caused by the recent attack” but has not yet said when it expects its operations to be fully up and running again.
The BBC visited convenience stores and supermarkets in Tokyo and Hokkaido – where workers said they were selling their current stock and hadn’t been able to place new orders for Asahi products, which also include water and food items.
Hisako Arisawa, who runs a liquor store in Tokyo, says she is worried about her customers as she can only get a few bottles of Super Dry at a time and expects the disruption to go on for at least a month.
The problem isn’t just affecting beer, she adds, there are also shortages of Asahi’s soft drinks, such as ginger beer and soda water.
Getty ImagesLast week, some of the country’s biggest convenience store chains warned their customers to expect shortages.
FamilyMart said its Famimaru range of bottled teas, which are made by Asahi, were expected to be in short supply or out of stock.
7-Eleven halted shipments in Japan of Asahi products, while Lawsons also said it expected shortages.
Mr Nakano, who didn’t want to share his first name, works for an alcohol wholesaler.
While some shipments from Asahi have resumed, he says he is only getting about 10-20% of the normal amount.
His orders are now handwritten and taken by fax. Asahi notifies him by fax when lorries are ready to leave its factory.
Asahi also owns big brands in Europe – such as Peroni, Grolsch, and the British brewer Fuller’s – but the firm has said those operations have not been affected by the cyber-attack.
Ransomware group Qilin – which has previously hacked other major organisations – has claimed responsibility for the attack on Asahi.
It operates a platform that allows users to carry out cyber-attacks in exchange for a percentage of extortion proceeds.
Asahi has not confirmed the nature of the attack on its operations but has said data suspected to have been leaked in the hack had been found on the internet.
It is the latest in a series of cyber-attacks by other hacking groups that have hit major firms around the world, including carmaker Jaguar Land Rover and retail giant Marks and Spencer.
Travellers were delayed at a number of European airports in September after a ransomware attack disrupted check-in and boarding software.
Back in Japan, a cyber-attack paralysed operations at a container terminal in the city of Nagoya for three days in 2024.
Japan Airlines was also hacked last Christmas, causing delays and cancellations to domestic flights.
AFP via Getty ImagesWhile Japan’s image around the world may be of a technologically advanced nation, some experts have warned it does not have enough cybersecurity professionals and has low rates of digital literacy when it comes to business software.
This issue was highlighted last year when officials finally stopped asking people to submit documents to the government using floppy disks, even though they fell out of fashion in much of the rest of the world in the 1990s.
Japan is vulnerable to cyber-attacks “given a reliance on legacy systems and a society with a high level of trust,” Cartan McLaughlin from Nihon Cyber Defence Group told the BBC.
Many organisations in the country are not prepared for attacks and are willing to pay ransoms, which makes them attractive to hackers, he added.
Speaking at a news conference this week, Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said the Asahi cyber-attack was being investigated.
“We will continue to improve our cyber capabilities,” he added.
Earlier this year, the Japanese government passed a landmark law giving it more powers in the event of cyber-attacks.
Experts have praised the Active Cyber Defense Law (ACD), because it allows the government to share more information with companies, and also empowers the police and Japan’s Self-Defense Forces to mount their own attacks to neutralise attackers’ servers.
But that is little consolation to small businesses like Ben Thai restaurant and its customers.
Owner Sakaolath says she’s not sure what will happen the next time she puts in an order for Super Dry, and nor do many others across Japan.
Additional reporting by Chie Kobayashi in Tokyo
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