President Donald Trump on Tuesday will announce an agreement with Pfizer to voluntarily sell its medications for less, as his administration pushes to link U.S. drug prices to cheaper ones abroad.

Trump will announce a drug pricing deal with Pfizer at 11 a.m. ET, a White House official told CNBC’s Eamon Javers. Pfizer CEO Albert Bourla will be in attendance, the official said.

The agreement involves discounted prices in Medicaid and a three-year reprieve on planned pharmaceutical tariffs as long as the company is building manufacturing plants in the U.S., a source told CNBC’s Angelica Peebles.

The deal comes as Pfizer and 16 other drugmakers face Trump’s Monday deadline to take steps to lower drug prices, as outlined in letters from the president.

Pfizer did not immediately respond to a request for comment. The Washington Post first reported the news on Tuesday.

Shares of Pfizer rose more than 3% on Tuesday after the report.

Trump in May signed an executive order reviving a controversial plan, the “most favored nation” policy, that aims to slash drug costs by tying the prices of some medicines in the U.S. to the significantly lower ones abroad.

The deal comes as drugmakers brace for Trump’s planned tariffs on pharmaceuticals imported into the country.

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