Overview

• The White House and Pfizer announced an agreement under which the company will lower prices on select medicines in exchange for temporary relief from punitive import duties.
• Pfizer will reduce selling prices to Medicaid for several drugs and offer some medicines at discounted rates directly to patients via a new government website, though the list of products and projected savings were not disclosed.
• The exemption for Pfizer is set for three years, according to the announcement, following the president’s threat of a 100% tariff on branded or patented imported pharmaceuticals starting October 1 unless firms build U.S. plants.
• Industry leaders including EFPIA warned that sweeping drug tariffs could raise costs, disrupt supply chains, and limit patient access to vital treatments.
• Markets reacted to the deal as Pfizer shares rose about 5%, while the broader tariff package also includes a 25% surtax on imported heavy trucks, 50% on kitchen furniture and related products, and 30% on upholstered furniture.