Johnson & Johnson (NYSE:JNJ) became the latest pharmaceutical titan to bow to White House pressure, announcing a voluntary agreement to lower prescription drug costs in exchange for an exemption from the administration’s aggressive new import tariffs.
The deal follows a template established by the Trump Administration over the last quarter, where major drugmakers trade domestic pricing concessions for supply-chain stability.
Under the terms, J&J will offer significant discounts on its pharmaceutical portfolio through TrumpRx.gov, a government-backed direct-to-consumer portal slated to launch this month.
The company also committed to "Most-Favored-Nation" (MFN) pricing, ensuring that U.S. Medicaid programs pay no more than the lowest prices offered in other wealthy, developed nations.
In return, the White House has granted J&J a three-year waiver from the 100% tariffs recently threatened on imported branded pharmaceuticals.
The exemption is a critical win for the New Brunswick-based company, which had previously warned that such duties could cost it hundreds of millions of dollars and trigger widespread medicine shortages.