Johnson & Johnson Secures Tariff Exemption Deal In Exchange For Drug Price Cuts

Johnson & Johnson (NYSE:JNJ) struck a deal with the Trump administration on Thursday to lower drug prices for U.S. consumers in exchange for exemptions from tariffs.

The details of the agreement remain undisclosed, including the updated pricing and the specific drugs involved. Johnson & Johnson has pledged to offer its medicines at substantially reduced prices via the TrumpRx.gov website and to extend Medicaid access at rates comparable to those in other developed nations.

As part of its $55 billion U.S. investment plan unveiled last year, the company also said it will build two new manufacturing plants in North Carolina and Pennsylvania, with further U.S. investment announcements expected later this year.

Early Cracks In Trump’s Drug Pricing Truce?

The agreement mirrors similar deals the Trump administration reached in December with nine other major pharmaceutical companies, which committed to lowering drug prices for the Medicaid program and for cash-paying customers to bring U.S. prices more in line with those in other developed countries.

However, despite the pressure from the Trump administration, drugmakers are reportedly planning to raise prices on at least 350 branded medicines in 2026, including vaccines for COVID-19, RSV, and shingles, as well as major cancer therapies.

In July, Johnson & Johnson’s efforts to reshape its participation in the 340B Drug Pricing Program were rejected by a federal court, following a dispute with the U.S. Department of Health and Human Services (HHS). The program requires pharmaceutical manufacturers participating in Medicaid and Medicare Part B to sell outpatient drugs at reduced prices to certain healthcare providers, including hospitals and clinics serving low-income and rural populations.

According to Benzinga Edge Stock Rankings, Johnson & Johnson has a growth score of 73.51% and a momentum rating of 93.82. Click here to see how it compares to other leading tech companies.

Price Action: Over the past year, Johnson & Johnson stock climbed 44.83%, as per data from Benzinga Pro. On Tuesday, it edged 0.28% higher to close at $660.62.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.