Drugmakers Buoyed as Trump Deal Eases Worst Fears on Pricing (1)

Oct. 1, 2025, 3:35 PM UTC

Wall Street had long feared US President Donald Trump would follow through with threats to impose aggressive drug-pricing policies, eroding the pharmaceutical industry’s profitability and depressing share prices.

Those fears were largely laid to rest this week after Pfizer Inc. cut a deal with the White House.

The company led the pack on Tuesday, negotiating a three-year reprieve on drug-import tariffs in exchange for a promise to reduce what it charges Medicaid. The government insurance program for low-income people accounts for a small fraction of Pfizer’s business and already gets steep discounts from drugmakers.

Pfizer also promised to price future ...

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