Drug prices to be reduced; agreement with Pfizer; Trump makes a historic announcement.

US President Donald Trump announced that his administration has reached an agreement with leading pharmaceutical company Pfizer to reduce the price of prescription drugs for low-income Americans. The move, which will provide relief to millions of people covered under the Medicaid programme, marks a significant step in the Trump administration’s efforts to regulate drug prices. This comes amid criticism that American consumers pay more than three times the price for branded medicines compared to other developed nations.

Under the new agreement, Pfizer will sell its existing drugs in the US at the lowest prices available in other developed countries. Additionally, any new drugs will be introduced in the US at the same price offered in other high-income nations. Pfizer will also participate in a new government-backed website called TrumpRx, which will allow patients to purchase medicines directly from manufacturers at discounts averaging up to 50 percent. However, officials said that consumers may not begin to see these major price reductions until 2026.

Alongside its commitment to lowering costs, Pfizer has pledged to invest $70 billion in US-based production, research, and development projects. This is expected to strengthen Trump’s broader goal of bringing pharmaceutical manufacturing back to American soil. Pfizer—best known for producing the COVID-19 vaccine Comirnaty and the antiviral drug Paxlovid—is the first major company to sign such a deal under Trump’s pressure campaign. The announcement comes just days after Trump warned that a 100 percent tariff would be imposed on branded drug imports starting in October unless companies built plants in the US. Similar agreements with other pharmaceutical firms are expected in the coming weeks.