The US and UK have reached a landmark deal to keep tariffs on British pharmaceutical exports at zero for the next three years, shielding one of the UK’s most valuable export sectors from potential trade barriers.
In exchange, the UK agreed to raise NHS drug spending and increase the price threshold for new treatments by 25%, marking the first NHS price hike in over two decades.
President Donald Trump had threatened tariffs of up to 100% on branded drug imports, while the new deal ensures tariff-free access for UK medicines worth £5 billion annually.
UK Trade Secretary Peter Kyle hailed the pact as a move that “protects jobs and boosts investment,” while US Health Secretary Robert Kennedy Jr. said it “brings balance to US–UK pharmaceutical trade.”
The agreement follows major pharmaceutical firms shifting investments to the US, including GSK’s $30 billion pledge and AstraZeneca’s paused UK expansion plans.
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