Pharmaceutical Policy and Tariffs

President Trump announced deals with nine major drugmakers — part of 14 firms now subject to the administration’s “most‑favored‑nation” pricing — that cap what the U.S. government will pay for new drugs at prices charged in other wealthy countries, explicitly extend those lower prices to state Medicaid programs, require at least $150 billion in U.S. manufacturing investment, and give companies a three‑year exemption from possible tariffs. The administration says a TrumpRx consumer portal will route buyers to manufacturers’ direct sites (expected early 2026, with some reports saying January), with examples like Merck’s Januvia falling from about $330 to $100 and Amgen’s Repatha from $573 to $239, while economists warn the moves may shift costs, curb coverage or innovation, and leave unclear how much patients actually save compared with existing insurance and Medicaid prices.