In a significant move aimed at reducing healthcare costs, the Trump administration has finalized a groundbreaking agreement with pharmaceutical giant Pfizer. The deal, announced during a White House press conference on Tuesday, will enable patients to purchase prescription drugs at heavily discounted rates through a new federal government-operated website, TrumpRx. Under the terms of the agreement, prices for certain medications will be reduced by up to 85% on the platform. Additionally, Pfizer has committed to lowering drug prices for Medicaid, the government’s health insurance program for low-income Americans, in exchange for exemption from tariffs. This development follows President Trump’s recent announcement of a 100% tariff on imported branded or patented drugs, effective October 1. Pfizer is the first pharmaceutical company to reach such an agreement after Trump issued ultimatums to 17 drug manufacturers earlier this summer, demanding price reductions within 60 days. During the press conference, Trump emphasized his policy of aligning U.S. drug prices with lower international rates, stating that Pfizer’s commitment to offering Medicaid medications at ‘most-favored nations’ prices would significantly reduce program costs. Pfizer confirmed that the majority of its primary care drugs would be available on TrumpRx, though specific medications were not disclosed. The company also pledged an additional $70 billion investment in U.S. manufacturing, research, and development. Pfizer’s CEO, Albert Bourla, highlighted the stability the deal provides regarding tariffs and pricing. Following the announcement, Pfizer’s shares surged nearly 7%. However, Trump acknowledged that his efforts to lower U.S. drug prices might lead to price increases abroad, as seen with Eli Lilly’s decision to raise prices in Europe to offset reductions in the U.S. The effectiveness of TrumpRx, set to launch in early 2026, remains uncertain, as insurance companies and intermediaries continue to influence drug costs.