TrumpRx would allow people to buy drugs directly from a government website, at a discounted price negotiated by the government.
TrumpRx Pfizer Deal
The Wall Street Journal reports White House to Announce ‘TrumpRx’ Drug-Buying Website
The White House is planning to unveil a direct-to-consumer website for Americans to buy drugs, dubbed TrumpRx, while also announcing that Pfizer plans to lower prices on several of its medications in the U.S., according to people familiar with the matter.
TrumpRx would allow people to pay cash for certain drugs directly from a government website, at a discounted price negotiated by the government. It’s unclear how many drugs would be offered, or whether the website would be useful for the majority of Americans who are already covered by private insurance, Medicare or Medicaid.
Separately, Pfizer is expected to be the first to announce a plan to lower drug costs after President Trump pushed companies for months to lower prices in the U.S. More companies are expected to follow suit.
Trump and Albert Bourla, the chief executive of Pfizer, are set to announce the cost-cutting measure at the White House later today, according to a White House official. Bourla is also expected to announce a $70 billion investment in manufacturing medications in the U.S., according to Pfizer spokeswoman Amy Rose and a White House official.
The official estimated Pfizer’s lowered prices could benefit as many as 100 million patients.
“President Trump is leveraging the power of the federal government to drastically cut drug prices for everyday Americans,” said White House spokesman Kush Desai. “Democrats talked the talk for decades about drug prices, but only President Trump is actually walking the walk.”
Trump last week declared that branded drugs would face 100% tariffs if their manufacturers aren’t building facilities in the U.S. The new investments, along with others in the works that Bourla mentioned in an August earnings call, likely mean the company would be exempt from those tariffs.
Trump called for pharmaceutical companies to participate in a direct-to-consumer drug buying platform, and offer “most favored nation” pricing—commonly understood as prices lower or comparable to those in other developed nations—in a July letter.
The reason drug manufacturing went overseas is US tax law encourages a build it there philosophy.
Trump is using tariffs to bring the manufacturing back to the US instead of fixing broken tax code.
What Accounts for Most of the US Trade Deficit with the EU?
The trade deficit with the EU is not as big as Trump says. And two huge chunks are easily fixable.
I discussed tax code in my post What Accounts for Most of the US Trade Deficit with the EU?
Ireland the Biggest EU Defict
The largest US deficit with the EU is with Ireland at $86 billion. Germany is in second place at $84 billion.
All of the deficit with Ireland is due to US pharmaceutical companies taking advantage Ireland’s low tax rate. I propose the US adopt a corporate tax rate of 10 percent with 20 percent on foreign profits and this production would return to the US pronto.
Trump can accomplish the same thing, in worse way, via tariffs. Either way, unlike iPhones, this production could easily return to the US.
Poof. Bring pharmaceutical production back to the US and factor in services, and the US trade deficit with the EI would shrink to 74 billion from 236 billion.
Weight Loss Drugs Help Blow Out the US Trade Deficit
Also consider Weight Loss Drugs Help Blow Out the US Trade Deficit
Let’s discuss Ireland, weight loss drugs, and other trade distortions.
The US trade deficit with Ireland for all of 2024 was $87 billion. For the four months through April, the deficit is already $65 billion.
That’s second to China at $88 billion.
Trump’s proposed solution is Tariffs plus TrumpRx.
Well, let’s see how it works.
The solution to cheaper drug prices is Medicare for all and permitting Medicare to negotiate with all drug manufacturers. For too long Big Pharma has bribed the executive and legislative branches from implementing this overall cost savings for the government, tax payer, and 99% of the citizenry.
For those that have private health insurance through their employers and retirees through the government or private employer, should they so desire, they ought to have the option of both systems. In short, employees should be grandfathered in but the system IMO ought to be sunsetted as well. I have serious doubts, however, that employers will continue providing healthcare to employees in non-union shops if Medicare for all were to pass due to tax increases on corporations to assist in covering the costs. Union shops may incur restrictions due to increased taxes on so-called Cadillac healthcare plans as well as those in senior management in both union and non-union settings.
The wealthy too should have the option of private health insurance and the ability to subscribe to Medicare for all. They will also be taxed to cover the a public option for healthcare.
Every other health insurance option else is a scam because of the grift that goes into cutting deals with this WH and Congress and prior governments as well. Medicare and Medicaid were the last healthcare programs that were passed in the 60s without the grift.
As to drug manufacturers exporting jobs to China, India, etc., the average US citizen has no idea where the country of origin is. This is because the manufacturers don’t have thanks to Congress and the president. The best guess when this started was at the turn of the 21st Century or the Clinton, Bush II years.
https://www.cidrap.umn.edu/report-details-where-top-100-brand-name-rx-drugs-are-made
Just imagine the howls of the anti-fascists if under the previous admin they had established the “Online Biden Discount Pharmacy.” Don’t lie and say you’d be fine with it, everyone knows that’s not true.
But also, don’t lie and say Trump’s plan offends you, if you voted for him we know you will never dare speak out against our leader.
As usual, the corporate owned government, no matter which half of the UniParty is temporarily in charge, just nibbling at the extreme edges.
One paragraph from this:
The Bill To Permanently Fix Health Care For All
by Karl Denninger
30 Mar 2017
https://market-ticker.org/akcs-www?post=231949
Wholesale drug pricing in the United States must be on a “most-favored nation” basis. The impact of this would be to force a level price across all nations for drugs produced by any pharmaceutical company marketing both in the US and anywhere else in the world. Violations, including attempts to “offshore” via subsidiaries to evade this requirement are deemed criminal and civil acts. The civil penalty shall be 300% of the difference paid to the customer who got screwed, and another 300% for each instance of a prescription filled at an inflated price paid as a fine to the government. This would drive drug prices down by at least half in the United States and for many drugs by 90% or more. It would instantly and permanently end, for example, the practice of charging someone $100,000 for scorpion antivenom in Arizona when the same drug from the same company is $200 for the same quantity 40 miles to the south and across the Mexican border. Since all prices must be posted at the retail consumer level for both goods and services controlling the drug pricing problem at a wholesale level is both simpler and sufficient since competition will already exist at the retail pharmacy level.
I like Denninger’s approach; the Trump Administration negotiations are one step closer to price fixing that would lead to shortages. As for developing new drugs with the US profits, I’m not sure that is a good thing. Within my circle of acquaintances, there have been a half dozen suicides recently, all were on expensive antidepressants.
… as covered by the Midwestern Doctor’s “The Dark Side of Antidepressants – Why are SSRIs so dangerous?” substack article of Jan 24, 2025
“… SSRI antidepressants are among the most harmful medications on the market, impacting society due to their widespread (and frequently unjustifiable) use. …
The most concerning SSRI side effect is their tendency to cause grisly suicides and homicidal violence which includes mass shootings.”
Every week it seems, a new on patent drug is advertised on TV. I don’t take any of whatever number of on patent prescription drugs, or the off patent ones for that matter.
Nothing matters any more
I’ve never seen an administration with the clever tactical timing of events and announcements this one has. It MUST be AI-enhanced. Where are the Dems on this, as well as for formulating policy and strategy? Nowhere, it seems.
“Trump is using tariffs to bring the manufacturing back to the US instead of fixing broken tax code.”
The last I checked the president doesn’t set tax policy. He does get to sign bills that Congress passes. What am I missing here, Mish?
But if SCOTUS rightly lets Trump set tariff policy which then promotes the return of pharma manufacturing back to the US, why does it matter how it’s achieved?
Do you honestly think Congress would get its act together to change the tax codes you refer to but don’t explicitly outline?
I don’t, and I doubt you do either.
The entirety of the structural changes Trump is trying to accomplish via tariffs are staggering. Granted, you don’t have to like what he’s trying to do or his methods, but these ARE NOT THINGS CONGRESS IS WILLING OR ABLE TO TACKLE.
What is the Trump family cut in this scheme?
Your attention to this matter is not appreciated…
cash is exchanged in brown paper bags for this very reason.
Crypto.
There are multiple apertures one could pilot an aircraft carrier through.
JoJo,
Stop please; all you are doing is parroting for a home team, that is refined at corruption
;Stop with the envy already…………Bernie and others do enough already, no need for you to chime in>>>How does Obama get a cut of ‘Obamacare’?
$500,000 speeches.
Don’t the Obamas have a home in Hawaii, (under construction), another in DC, his 3rd residence in the Hamptons and the fourth in Chicago?
Obama’s current presidential pension at $246,800. His and Michelle’s book royalty fees are reportedly at approximately $81M and his speaking fees are at an average of $400K per speech. After leaving the WH he is reported to have received over $1.2M per speech at various Wall Street banks.
The presidential grift started with St. Ronnie and has continued since. The difference between Trump and prior presidents is Trump has torn off the charade that since ’89, presidents have been bought and paid for by bribes in one form or another.
apparently it’s 3% to 5% of wholesale prices, not even hidden so it’s ok
OT:
Mish, you may be interested in a city near me that imploded financially this week. I own property here and am going to help pay for the mess the city made.
A couple of years ago, the state auditor, Beth Moore, found Rocky Mount to be corrupt and recommended a full audit. Rocky Mount declined and now they are in big doodoo (an economic term that often describes the havoc beaurocrats create).
The City of Rocky Mount NC financially imploded this week, due to overspending by millions a month. They are going to cut half of all part time staff and 10% of all full time staff and greatly increase everyone’s utility bill to cover their mistake.
This isn’t a small mistake, it’s huge. The mayors speech can be found on the City of Rocky Mount’s Facebook page.
I would not be surprised to eventually see this make national news.
This is Rocky Mount, NC.
Yikes. We had a little entity called Orange County, CA that went bankrupt to the tune of tens of billions circa 1994. And a little burg called Detroit more recently. There is a municipal bankruptcy chapter.
This really stinks. With PZE’s record of injecting half of the world’s population with a toxic “countermeasure” DNA-altering substance with the clear intent to harm (according to sources definitely more trustworthy than anyone associated with the big pharma mafia) plus a huge coverup program including the attempt to hide critical documents from the population for 75 years (a great thanks to Aaron Siri for toppling that one) this looks like a well-disguised protective racket. Why does this remind me of the definition if government and industry shares the same bed it’s called fascism?
Great idea, I buy drugs like ivermectin and various antibiotics for conditions that are sometimes off label. I buy from Canada drugstore and LaLa RX in India because doctors in the US will not prescribe meds for off label use. They tell me that the insurance companies will not pay for it. The Trump Rx may not right for everyone, but for people like me It’s likely to be a faster service and maybe a better price. Keep the profit in the USA.
“The reason drug manufacturing went overseas is US tax law encourages a build it there philosophy.”
It’s not just tax law but the offshoring is due to FDA regulations also. The FDA allows a pharma company to provide it’s own company translator for an in person on site audit. The FDA does not require that the inspector speaks the local language. Obviously, this reduces the rigor of the audit as the inspector is unable to talk with manufacturing employees directly and separately.
And FDA inspectors don’t speak “Irish”?
Would a crony work with a crony to set rules and regs and tax rates such that it benefits to move to a foreign country? Or, does the crony not care because there is a benefit greater from getting taxed out or regulated out of their home country? The govt is all about picking winners and losers. The very rules that put requirements, and loopholes, in place are written by the industry. The tax code is the way it is because cronies wrote it so for the legislation. The regulations are stiff because the industry wrote it that way. Or, in either case, because the cronies didn’t stand in the way. Why does country subsidize their manufacturing capacity? Because there is support to do so. Nothing in politics/govt is done by accident.
This makes no sense. If the drug I need is made by Lilly or Merck, this deal with Pfizer does me no good. Moreover, I don’t want to buy drugs on a government website.
This is not a solution…. it’s just muddying the problem more.
Albert Bourla is still politically vulnerable as he was in charge of Pfizer throughout the Covid scam. I suspect Trump knew who he was targeting right from the start.
What’s Trumps take? 2%
Lifetime supply of viagra? Limp dick’s do…
Frosty,
Please stop with your parroting act……….. Envy is not very becoming.
Trump’s take will be linked to how much of the deficit he removes – his family business wants to pay as little tax as possible and the sooner the deficit is addressed, the sooner his cronies can pay less tax.
“I know the shape of each pill if I’m grasping for one of them in the dark, and I have a unique relationship with each of them.” Life as a pharmaceutical-American.
https://defector.com/my-life-as-a-pharmaceutical-american
Bernie Sanders proposed legislation ten years ago to prohibit charging Americans more than 110% of the lowest price for which they sold a drug anywhere else in the world. It applied to about 100 specified medicines. It made sense, so of course we couldn’t have it. No drug company should be allowed to charge more in the U.S. than they charge anywhere else.
I seem to recall them saying they charge the us more so they can charge poorer nations less. Or something like that
Most of trumps exc orders should be handled by a functioning congress. I would campaign finance reform would be a start
All of the corporations are just bending the knee. Until trump is out
Bending the knee? Trump? really, take a visit to the North Country News feeds
Minneapolis MN
Graft in the billions by the state and fed dem’s stealing from OMG The CHILDREN . Billing For food never delivered and buying Apartments in Africa……… Oh wow!!
Im dont know what your talking about in mn. But thats part of the problem. As an independent i watch both sides scream about the other while the politicians get away with what they want. We would do better as a nation if we held our own party/ politicians to the ideals we expect for the opposite side.
Im just saying all these companies figure its better to pay trump off/ not raise prices etc. soon as he leaves office or control they will jack the prices back up. Kind of like china promised to buy all the soybeans in trumps first term. Then not. Guess thats prob the reason hes pissed at them.
Why not? If you go on that score, then no US citizen should earn more than 110% of the lowest earnings anyone receives worldwide for doing a particular job.
That would make every single investment banker middle class and every thrift employee homeless.
This must be the 1500% discount we’ve heard so much about…
It is truly a golden age! People can become fabulously wealthy just by consuming large quantities of prescription drugs.
Dr John Campbell from the UK: S. Korean research on large population indicates that covid vax increase lung cancer by 58%, prostate cancer by 69%, thyroid +35%, gastric +34%. On average by: 27%. Nuremberg trials now.
ALL OF YOU WHO TOOK THOSE COVID SHOTS ARE GOING TO DIE! [lol]
It is not a laughing matter if it happens to you or a loved one.
What a rube
Did check if this doctor is on the payroll of certain family…..
It’s not simply the Covid vax, it’s getting vax #4 or more that upregulates IgG4, downregulating other aspects of the immune response, allowing diseases – including cancers – to take hold. Per Danish scientists.
COVID-19 mRNA Vaccines Top List of Drugs Most Often Reported with Heart Inflammation
https://www.nature.com/articles/s41598-025-13234-6?utm_source=substack&utm_medium=email
Interesting to see the upvote vs downvote ratio of Michael’s contribution. That 2/3rds of Mish’s readers still seem to believe in the narrative shows how incredibly effective the Cult’s brainwashing system was and still is.
Lapado, to name just one, and most likely not a reader of this blog, would probably upvote this also.
https://childrenshealthdefense.org/defender/florida-end-all-vaccine-mandates-states-surgeon-general-announces
Why not just negotiate prices for all medical products, even with your local doctor? Then maybe set up a government insurance program based on those prices? Maybe he could call it “medicare for all” or something catchy like that. Free market Democrats would hate it.
The last thing we need to do is give more tax breaks to pharmaceutical companies: https://www.cfr.org/blog/american-pharmaceutical-companies-still-arent-paying-tax-us
Pfizer has paid no US corporate income taxes since 2022. That’s the company that bilked New London and Connecticut for all sorts of tax breaks and left the minute the tax breaks expired.
That whole fiasco gave us the infamous Kelo vs. City of New London Supreme Court ruling.
“The well-laid plans of redevelopers, however, did not pan out. The land where Susette Kelo’s little pink house once stood remains undeveloped. The proposed hotel-retail-condo “urban village” has not been built. And earlier this month, Pfizer Inc. announced that it is closing the $350 million research center in New London that was the anchor for the New London redevelopment plan, and will be relocating some 1,500 jobs”