Johnson & Johnson said on Thursday that it has reached an agreement with the Trump administration to lower drug prices for U.S. consumers in exchange for relief from U.S. trade tariffs.
In a statement, the company said the agreement aligns with the conditions set out by President Donald Trump, allowing Johnson & Johnson’s pharmaceutical products to qualify for tariff exemptions.
The healthcare giant added that it is working closely with the administration on initiatives designed to improve access to medicines and healthcare for Americans. These steps include participation in the TrumpRx.gov program and efforts to offer pricing that is more comparable across treatments.
Johnson & Johnson also announced plans to expand its U.S. manufacturing footprint, unveiling two new production facilities in Pennsylvania and North Carolina. The projects form part of a broader $55 billion investment commitment in the United States, with additional investments expected to be announced later this year.
The announcement follows recent comments from the Trump administration that it had secured similar drug pricing agreements with nine major pharmaceutical companies, aimed at reducing medication costs for American patients.
Lowering prescription drug prices has been a key priority for Trump since returning to office, alongside warnings that additional tariffs could be imposed on pharmaceutical imports to pressure drugmakers.
Last year, the administration introduced a 100% tariff on pharmaceutical imports, while granting exemptions to companies that commit to building manufacturing facilities within the United States.
