J&J strikes deal with US government to cut drug prices, gain tariff exemptions

[BumRushDaShow]

Source: Reuters

January 9, 2026 4:53 AM EST Updated 11 hours ago


Jan 8 (Reuters) - Johnson & Johnson (JNJ.N) said on Thursday that it has reached an agreement with U.S. President Donald Trump's administration to cut drug prices for Americans in exchange for exemptions from U.S. tariffs.

The Trump administration in December reached agreements with nine other major pharmaceutical companies to cut the prices of their medicines for the government's Medicaid program and for cash-paying consumers, aiming to bring U.S. drug costs in line with those in other wealthy countries.

U.S. patients currently pay far more for prescription medicines, often nearly three times more than in other developed nations, and Trump has been pressuring drugmakers to lower prices to levels paid abroad. "The joint agreement meets the requests laid out by President Trump to the industry and provides the company's pharmaceutical products an exemption from tariffs," J&J said in a statement on Thursday.

Specific terms of the agreement were not disclosed, including details on revised drug prices or which medicines are covered.
J&J said that it will participate in the TrumpRx.gov website to allow Americans to purchase its drugs at significantly discounted rates. It will also provide Medicaid access at prices comparable with those in other developed countries.

Read more: https://www.reuters.com/business/healthcare-pharmaceuticals/johnson-johnson-reaches-deal-with-us-government-lower-drug-prices-2026-01-09/

[dlk]

1. Another day, another shakedown

What else can be expected of this afministration?

[Mark.b2]

2. I wouldn't mind a little "shakedown" of Amgen...

I don’t mind drug prices being coerced down as long as it doesn’t result in shortages and pharmaceutical companies pulling back on developing new drugs.

It’s always amazed me politicians haven’t done more in this arena. I guess donations to politicians pays off!

[JohnnyRingo]

3. These "lowered drug prices" are a scam like everything the WH does.

I was thrilled when Bristol Myers announced they would cut the price of a blood thinner "Eliquis" to zero. Free! I'm on Medicare and my co-pay is at least about $400 a month so it was good news indeed!

Backing it up and listening closer they said they will offer the drug for free to Medicaid. People on Medicaid can't afford co-pays so I believe it was already free to them. The government is the sole benefactor of the deal. It is just another gift to the president ion exchange for favors..

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