January 12, 2026
AbbVie pledges $100 billion for tariff and pricing exemptions
Pharma giant negotiates tariff and price control exemptions with White House
🏛️Government💰Economy🏥Public Health
AbbVie announced on Jan. 12, 2026, that it will invest $100 billion in U.S. research, development, and manufacturing over the next decade. The pharma giant also pledged to lower Medicaid drug prices and participate in Trump's direct-to-consumer TrumpRx platform with blockbuster drugs including Humira, Synthroid, Combigan, and Alphagan. In exchange, AbbVie secured exemptions from tariffs and all future federal drug pricing mandates for three years. The deal marks the Trump administration's largest corporate commitment yet under its "most favored nation" program. Critics call it a pay-to-play scheme that lets pharma companies buy their way out of accountability. AbbVie spent $7 billion annually marketing Humira before its patent expired, and Medicare alone spent $7 billion per year on that one drug. The company's CEO called the deal a way to "protect U.S. pharmaceutical innovation." The White House says the agreement will create jobs and lower prices. But the terms remain confidential, and there's no enforcement mechanism to verify the $100 billion pledge. Other major pharma companies including Eli Lilly and Merck have signed similar deals with equally vague details. Trump has used these announcements to claim credit for "solving" drug pricing without actual legislation.
AbbVie announced a $100 billion U.S. investment pledge on Jan. 12, 2026, spread over 10 years. The investment covers research, development, and capital expenditures including manufacturing facilities. It's the largest corporate commitment under Trump's 'most favored nation' pharma program.
In exchange for the investment, AbbVie secured a three-year exemption from all tariffs on pharmaceutical imports. The company also won exemptions from any future federal drug pricing mandates, including potential reforms to Medicare negotiations. The White House confirmed the exemptions but kept other deal terms confidential.
AbbVie pledged to lower Medicaid drug prices and join TrumpRx, a new direct-to-consumer government platform. The company will offer Humira, Synthroid, Combigan, and Alphagan through the program. Humira alone cost Medicare $7 billion annually before its biosimilar competition arrived in 2025.
Critics say the deal lets AbbVie pay to avoid accountability on drug pricing. Before Humira's patent expired, AbbVie spent $7 billion per year marketing the drug while raising prices repeatedly. The company fought to delay biosimilar competition through over 130 patents, a strategy called a 'patent thicket.'
The $100 billion pledge has no public enforcement mechanism or timeline verification. Similar deals with Eli Lilly, Merck, and other pharma giants also lack detailed terms or oversight. Industry analysts note these companies already planned major U.S. expansions before the deals were announced.
Trump has used these corporate announcements to claim he's lowering drug prices without legislation. Congress hasn't passed comprehensive drug pricing reform since the Inflation Reduction Act in 2022, which allowed limited Medicare negotiations. AbbVie's exemption from future mandates blocks potential reforms.
AbbVie employs 29,000 people in the U.S. and sells drugs to 16 million Americans annually. The company reported $54.3 billion in global revenue for 2024. CEO Robert Michael called the deal essential to 'protect U.S. pharmaceutical innovation' while maintaining pricing flexibility.
🏛️Government💰Economy🏥Public Health
People, bills, and sources
Richard Gonzalez
AbbVie CEO
Susie Wiles
White House Chief of Staff
Katie Porter
U.S. Representative (D-CA), House Oversight Subcommittee Chair
Bernie Sanders
U.S. Senator (I-VT)
Jeffrey Stewart
AbbVie CFO
Karoline Leavitt
White House Press Secretary
Donald Trump
President of the United States
What You Can Do
1
civic action
Contact House Oversight Committee to demand investigation of AbbVie deal legality
Rep. Porter's subcommittee has jurisdiction to investigate whether the White House can grant company-specific regulatory exemptions and whether the deal violates competitive neutrality.
Hi, I'm calling to support Rep. Porter's investigation into the AbbVie-White House drug pricing deal.
Key points to mention:
- AbbVie negotiated regulatory exemptions directly with White House, bypassing FDA and HHS
- Deal grants tariff exemption and waiver from future price control mandates
- Creates two-tier system where AbbVie exempt from rules applying to competitors
- Rep. Porter called it 'corporate regulatory capture'
Questions to ask:
- Will the committee hold hearings on whether president can grant company-specific exemptions?
- What oversight exists to prevent White House from selling regulatory waivers?
- Will the committee investigate other pharmaceutical companies receiving similar deals?
Specific request: I want public hearings on the deal's legality and legislation prohibiting company-specific regulatory exemptions.
Thank you.
2
civic action
Contact Senate HELP Committee to support Sanders' legislation prohibiting company-specific exemptions
Sanders chairs the Senate Health, Education, Labor and Pensions Committee and said he'll introduce legislation banning presidents from granting company-specific regulatory waivers.
Hi, I'm calling to support Chairman Sanders' legislation prohibiting company-specific regulatory exemptions.
Key points to mention:
- AbbVie received tariff exemption and price control waiver unavailable to competitors
- Deal sidesteps Trump's four stated drug pricing priorities from State of the Union
- CFO admitted $100B pledge is 'acceleration and consolidation of planned investments,' not new spending
- White House is negotiating similar deals with Pfizer, Eli Lilly, and Merck
Questions to ask:
- When will Chairman Sanders introduce the legislation?
- Will the committee hold hearings on pharmaceutical regulatory capture?
- What oversight mechanisms can prevent future quid pro quo deals?
Specific request: I want the committee to pass legislation requiring all drug pricing rules to apply uniformly across the industry.
Thank you.
3
civic action
File FTC complaint about anticompetitive effects of company-specific exemptions
The Federal Trade Commission investigates unfair competition. Company-specific regulatory exemptions may violate competitive neutrality by giving AbbVie advantages over competitors.
Subject: Complaint Regarding Anticompetitive White House-AbbVie Agreement
Dear Federal Trade Commission,
I'm writing to file a complaint about the anticompetitive effects of the White House-AbbVie drug pricing agreement announced Jan. 12, 2026.
Anticompetitive concerns:
- AbbVie receives tariff exemption unavailable to Pfizer, Merck, Eli Lilly, and other competitors
- Three-year waiver from future price control mandates creates two-tier regulatory system
- Competitors face potential 25% pharmaceutical tariffs while AbbVie exempt
- Deal saves AbbVie estimated $2-3 billion annually in tariff costs
Requested action: Investigate whether company-specific regulatory exemptions violate competitive neutrality principles and constitute unfair trade practices.
Sincerely, [Your name and contact information]