Trump pushes 1,500% drop in drug prices as pharma firms face Sept 29 deadline and tariffs
Earlier this month, Trump told CNBC that planned tariffs on imported pharmaceuticals could eventually reach as high as 250% — the most severe rate he has proposed to date.
- Aug 25, 2025,
- Updated Aug 25, 2025 10:38 PM IST
US President Donald Trump on August 25 said he would slash drug prices between 1,400% and 1,500%, reaffirming his administration’s aggressive stance on pharmaceutical pricing and plans to impose higher tariffs on imported medicines. “Going to do a number on costs of drugs in US,” he said during a briefing.
This announcement comes nearly a month after Trump sent letters to leading pharmaceutical companies — including Johnson & Johnson, Pfizer, AstraZeneca, Bristol Myers, GSK, Merck, Novartis, Roche, and Sanofi — setting a September 29 deadline to lower drug prices. He demanded that these companies extend “most-favored-nation” (MFN) pricing to all Medicaid patients.
“Provide your full portfolio of existing drugs at MFN rates for every single Medicaid patient,” Trump directed in the letters.
He warned that failure to comply would prompt his administration to “deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices.”
Earlier this month, Trump told CNBC that planned tariffs on imported pharmaceuticals could eventually reach as high as 250% — the most severe rate he has proposed to date. He explained that he would start with a “small tariff,” which would increase to 150% within a year to a year and a half, and later rise to 250%.
The move, he said, is aimed at bringing pharmaceutical manufacturing back to the United States. However, Trump has previously reversed course on tariff proposals. In early July, he threatened 200% tariffs, only to later revise that figure. Despite the uncertainty, the administration maintains that these measures are part of a broader strategy to reduce drug costs and shift production domestically.
US President Donald Trump on August 25 said he would slash drug prices between 1,400% and 1,500%, reaffirming his administration’s aggressive stance on pharmaceutical pricing and plans to impose higher tariffs on imported medicines. “Going to do a number on costs of drugs in US,” he said during a briefing.
This announcement comes nearly a month after Trump sent letters to leading pharmaceutical companies — including Johnson & Johnson, Pfizer, AstraZeneca, Bristol Myers, GSK, Merck, Novartis, Roche, and Sanofi — setting a September 29 deadline to lower drug prices. He demanded that these companies extend “most-favored-nation” (MFN) pricing to all Medicaid patients.
“Provide your full portfolio of existing drugs at MFN rates for every single Medicaid patient,” Trump directed in the letters.
He warned that failure to comply would prompt his administration to “deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices.”
Earlier this month, Trump told CNBC that planned tariffs on imported pharmaceuticals could eventually reach as high as 250% — the most severe rate he has proposed to date. He explained that he would start with a “small tariff,” which would increase to 150% within a year to a year and a half, and later rise to 250%.
The move, he said, is aimed at bringing pharmaceutical manufacturing back to the United States. However, Trump has previously reversed course on tariff proposals. In early July, he threatened 200% tariffs, only to later revise that figure. Despite the uncertainty, the administration maintains that these measures are part of a broader strategy to reduce drug costs and shift production domestically.