12/19/2025
President Donald Trump unveiled “most favored nation” drug agreements with nine manufacturers on Friday, with senior administration officials claiming that pharmaceutical companies are now rushing to ink deals of their own with the president.
In total, Trump has signed deals with 14 of the world’s 17 largest drug manufacturers. Friday’s newly announced agreements were with Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead, GSK, Merck, Novartis, and Sanofi, on top of previous announcements of deals with AstraZeneca, Eli Lilly, EMD Serono, Novo Nordisk, and Pfizer.
Trump’s predecessor, former President Joe Biden, similarly sought to negotiate with drug manufacturers on domestic prices but saw little success. Trump credited his tariff slate with bringing the pharmaceutical executives to the table.
“We told them, ‘If you don’t do it, we’re going to have to use tariffs, and we’re going to charge you a 10% tariff,’ which is far more money than the money we’re talking about,” the president said at the White House. “And they immediately agreed to do it. They said, ‘Is it a threat?’ I said, ‘Yes, it is a threat,’ and they said, ‘We will do it,’ and they dropped the price.
“Starting next year, American drug prices will come down fast and furious and will soon be among the lowest in the developed world,” he continued.