Pfizer (PFE) CEO Albert Bourla said Tuesday he has a "special relationship" with President Trump, cemented during the COVID-19 pandemic when the two were in regular contact to help speed up vaccine production. That relationship, he said, has created a direct line to discuss some of the headwinds the company faces out of Washington, D.C.

In his second term, Trump is targeting the drug industry for high prices and overseas production — threatening tariffs as high as 250% on imported drugs. But Bourla told Yahoo Finance he believes Trump and other officials in D.C. are having productive conversations with industry leaders about tariffs and drug pricing.

"I think [Trump] is educated, of course he doesn't go into the details, it's not his job, but he understands the dynamics [of the industry]," Bourla said.

When asked about the tariff threat, Bourla shared his understanding from his ongoing discussions.

"I don't want to speak for the president, but what he said today, which was very important also, was that it would be a very small tariff in the first couple of years. And then he opened the window for a grace period. Because I had this discussion with him and I had this discussion with multiple other members of the administration," Bourla said.

Read more: What Trump's tariffs mean for the economy and your wallet

The industry is awaiting the results of an investigation by the administration into how those tariffs will be implemented — and Bourla said the devil will be in the details.

Currently, more than 90% of prescriptions in the US are from generics, which are often the cheapest drug type. Branded drugs are often the most expensive and are largely produced in the US. But some early components of the manufacturing process, key chemicals known as active pharmaceutical ingredients (APIs), are often made overseas in Europe or Asia. That will be important to understand when the final ruling for the tariffs is made.

"We need to understand if the API will dictate the country of origin, or where the final product is made," Bourla said.

Pfizer is also one of the companies that received a letter from Trump last week detailing demands to reduce prices for Medicare and Medicaid enrollees to match the lowest price paid by developing nations, known as Most Favored Nations (MFN).

The company is currently planning for the implementation of reduced prices, as well as working on how to mitigate negative impacts, Bourla said.

"We are still discussing it with the president. ... The devil could be in the details in these stages," he said.

Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem.

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