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Landmark UK-US pharmaceuticals deal to safeguard medicines access and drive vital investment for UK patients and businesses

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UK and US agree zero tariff deal on pharmaceuticals

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The Hill

5628347 Trump Tariffs Uk Trade Deal Drugs

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Jean-Baptiste Wautier

"The prices of electronics would definitely go up."

The tariffs will "increase prices for everything that's imported, and that includes food."

Trump tariffs would "raise prices even more for consumers."

"I am extremely confident that food will get more expensive."

Trump's tariffs would "increase the cost of US manufacturing."

"Trump is about to make every American pay even more for coffee."

"Tariffs would disrupt supply chains and increase production costs."

Will the Proposed Trump Tariffs Increase the Price of Groceries/Goods/Services?

The UK secured a 0% tariff rate for all UK pharmaceutical exports to the US for at least three years, which the UK government described as the lowest rate offered to any country, while the US agreed to exempt UK-origin pharmaceuticals and medical technology from tariffs.

The UK secured a 0% tariff rate for all UK pharmaceutical exports to the US for at least three years, which the UK government described as the lowest rate offered to any country, while the US agreed to exempt UK-origin pharmaceuticals and medical technology from tariffs.

In exchange for the tariff exemption, the UK committed to increase the net price it pays for new medicines by 25%, raising the cost-effectiveness threshold from 20,000 to 30,000 pounds per quality-adjusted life year to 25,000 to 35,000 pounds per quality-adjusted life year.

In exchange for the tariff exemption, the UK committed to increase the net price it pays for new medicines by 25%, raising the cost-effectiveness threshold from 20,000 to 30,000 pounds per quality-adjusted life year to 25,000 to 35,000 pounds per quality-adjusted life year.

The UK will reduce the repayment rate owed by pharmaceutical companies under the Voluntary Scheme for Branded Medicines Pricing, Access and Growth to 15% in 2026, down from approximately 23%, according to statements from both governments and industry sources.

The UK will reduce the repayment rate owed by pharmaceutical companies under the Voluntary Scheme for Branded Medicines Pricing, Access and Growth to 15% in 2026, down from approximately 23%, according to statements from both governments and industry sources.

US officials stated that the agreement addresses long-standing imbalances in pharmaceutical trade, with Ambassador Greer noting that American patients have been forced to subsidize prescription drugs in other developed countries by paying a significant premium for the same products.

US officials stated that the agreement addresses long-standing imbalances in pharmaceutical trade, with Ambassador Greer noting that American patients have been forced to subsidize prescription drugs in other developed countries by paying a significant premium for the same products.

Major pharmaceutical companies including Bristol Myers Squibb announced plans to invest upwards of $500 million over five years in the UK across research, development and manufacturing, while concerns had been raised about firms like AstraZeneca canceling or pausing UK investments.

Major pharmaceutical companies including Bristol Myers Squibb announced plans to invest upwards of $500 million over five years in the UK across research, development and manufacturing, while concerns had been raised about firms like AstraZeneca canceling or pausing UK investments.

The Association of the British Pharmaceutical Industry described the deal as an important step toward ensuring patient access to innovative medicines and improving the UK's position to attract global life science investment, though noting many details remain to be worked out.

The Association of the British Pharmaceutical Industry described the deal as an important step toward ensuring patient access to innovative medicines and improving the UK's position to attract global life science investment, though noting many details remain to be worked out.

UK Secures Zero Tariffs on US Pharma Exports in Trade Deal

US, UK announceSecures dealZero Tariffs on pharmaceuticalUS tariffs,Pharma drugExports pricingin Trade Deal

The Controversies

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