US exempts UK from tariff on pharmaceuticals, medical technology imports for three years

According to the British government, the UK became the only country in the world to secure a zero per cent tariff on pharmaceuticals to the US

The deal will also secure preferential terms for the UK’s med tech exports, with no additional new tariffs.

NHS to buy more from US pharmaceuticals

The landmark trade deal will also benefit tens of thousands of NHS patients by securing and expanding access to vital drugs, safeguarding Britain’s medical supply chain, and driving crucial investment, the UK government said.

The deal comes after Donald Trump threatened to raise tariffs to as high as 100% on branded drug imports, one of the UK’s biggest exports to the US.

Under a new deal struck with the Trump administration, the UK’s NHS will purchase more American-produced pharmaceuticals.

This came after warnings that US pharmaceutical companies would shut down their UK-based production sites if the NHS did not pay more for drugs.

“This vital deal will ensure UK patients get the cutting-edge medicines they need sooner, and our world-leading UK firms keep developing the treatments that can change lives,” Science and Technology Secretary Liz Kendall said.

According to the UK’s Department for Business and Trade, the country exported $14.68 billion worth of medicines to the US in the 12 months to the end of September, making up 17.4% of all goods exports in that period.

White House spokesman Kush Desai said the agreement with the UK was a “historic step towards ensuring that other developed countries finally pay their fair share”.

US Health Secretary Robert F. Kennedy Jr. said the agreement “strengthens the global environment for innovative medicines and brings long-overdue balance to US–UK pharmaceutical trade.”