Johnson & Johnson Reaches Agreement With Trump Admin to Cut Drug Prices

The company said the agreement meets the president’s requests to the pharmaceutical sector.

The Johnson & Johnson logo is displayed at company offices in Irvine, California on Oct. 17, 2023. Mario Tama/Getty Images

Johnson & Johnson (J&J) said on Jan. 8 that it has struck a voluntary deal with the Trump administration to lower drug prices for U.S. patients in exchange for tariff relief.

In a statement, the pharmaceutical and medical technology company said it will participate in the TrumpRx.gov platform to allow Americans to purchase its medicines at “significantly discounted rates” and to provide Medicaid program access at prices comparable to those in other developed nations.

J&J said the agreement meets President Donald Trump’s requests to the pharmaceutical sector and ensures the company’s products are exempt from U.S. tariffs.

“Today’s agreement shows that when the public and private sectors work together towards shared goals, we can deliver real results for patients and the U.S. economy,” J&J chairman and CEO Joaquin Duato said in the statement.

“I’m proud that Johnson & Johnson is answering President Trump’s call to lower drug prices for everyday Americans while maintaining our role in improving and saving lives and ensuring that the United States continues to lead the world in healthcare innovation,” Duato added.

J&J did not specify which medications would be discounted or how much the prices would be lowered.

The company also announced plans to build two new manufacturing facilities in Pennsylvania and North Carolina as part of its $55 billion investment in U.S. manufacturing, research, and development, with further investments likely to be announced later this year, according to the statement.

J&J is one of 17 pharmaceutical companies that Trump sent letters to last August, which called for the implementation of “Most Favored Nation” drug pricing in the United States.

Last December, Trump unveiled deals with nine of those companies to reduce prices for medications related to autoimmune diseases, cancer, diabetes, and other disorders for Americans.

These companies are Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi, according to a White House fact sheet.

Five other drugmakers—AstraZeneca, EMD Serono, Novo Nordisk, Lilly, and Pfizer—also signed deals with the administration earlier last year.

Most-favored-nation pricing, as directed by the president in a May 12, 2025, executive order, aims to ensure that Americans don’t pay more for drugs than consumers in other developed countries.

“Americans will no longer be forced to pay almost three times more for the exact same medicines, often made in the exact same factories. As the largest purchaser of pharmaceuticals, Americans should get the best deal,” the order states.

In his order, Trump called on drug manufacturers to offer U.S. consumers the most-favored-nation pricing, noting that failure to do so could lead his administration to “take additional aggressive action.”

Travis Gillmore contributed to this report.