The United Kingdom and the United States have reached an agreement to maintain zero tariffs on UK pharmaceutical exports to the US, according to BBC, as reported by Gazeta Express.
Under the deal, the UK will pay more for medicines via the NHS in exchange for a guarantee that US import taxes on British-made pharmaceuticals will remain at zero for three years. This marks the first expected increase in NHS medicine spending in over 20 years.
The agreement follows threats from US President Donald Trump, who had warned of tariffs of up to 100% on brand-name drug imports, one of the UK’s largest export categories to the US.
Business and Trade Secretary Peter Kyle stated the deal ensures that UK pharmaceutical exports—worth at least £5 billion annually—will enter the US tariff-free, protecting jobs, boosting investment, and positioning the UK as a global life sciences hub.
In the 12 months ending September, the UK exported £11.1 billion in pharmaceuticals to the US, accounting for 17.4% of all UK goods exports during that period, according to the Department for Business and Trade.
While pharmaceuticals were excluded from Trump’s earlier tariff waves, he has repeatedly threatened to increase tariffs on medicines, citing concerns over US dependence on foreign-made drugs and aiming to expand domestic production. Trump also argued that American consumers effectively subsidize drugs for other developed nations by paying higher prices domestically, pressuring other countries to pay more.
