Global healthcare giant Johnson & Johnson has said it has reached a voluntary agreement with the Trump Administration aimed at lowering prescription drug prices and expanding access to medicines for millions of Americans — a move that also exempts the company’s pharma products from tariffs.

 

The agreement responds directly to President Trump’s demands that drugmakers cut costs for US patients and ties price reductions to a sweeping expansion of domestic manufacturing and investment.

 

“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 US economy,” said Joaquin Duato, Chairman and Chief Executive Officer of Johnson & Johnson. 

 

“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.”

 

As part of the deal, Johnson & Johnson will participate in TrumpRx.gov, a new direct-to-patient platform that allows Americans to buy medicines at significantly discounted prices. The company will also align US drug pricing more closely with prices in other developed countries and extend those comparable prices to Medicaid programs.

 

The agreement also reinforces the administration’s push for greater global recognition of the value of healthcare innovation.

 

Alongside the pricing commitments, Johnson & Johnson said it is accelerating a previously announced $55 billion investment in US manufacturing, research, development and technology by early 2029. Over the past 10 months, the company has already launched billions of dollars in new domestic manufacturing investments, aiming to produce the vast majority of its advanced medicines in the United States.

 

On Tuesday, the company announced two new US manufacturing facilities: a next-generation cell therapy plant in Pennsylvania and a state-of-the-art drug product manufacturing site in North Carolina.

 

Construction is also advancing on a $2 billion biologics manufacturing facility in Wilson, North Carolina, which broke ground last year and is expected to create approximately 5,000 skilled construction and manufacturing jobs. Johnson & Johnson said it has already begun hiring advanced manufacturing workers for the site.

 

In addition, the company secured a new 160,000-square-foot biopharmaceutical manufacturing facility in Holly Springs, North Carolina, backed by a $2 billion investment over the next decade that will create about 120 new jobs.