UK and US agree zero-tariff deal on pharmaceuticals
LONDON — The United Kingdom has reached a deal guaranteeing a 0% duty rate on all British medicines exported to the United States for at least three years, officials said Monday, in exchange for increased British spending on new drugs.
As part of the deal, announced by officials from both sides, the United States government agreed to exempt pharmaceutical products, pharmaceutical ingredients and medical technology originating in the United Kingdom from import taxes.
The Trump administration said that in return, British pharmaceutical companies would commit to investing more in the United States and creating more jobs.
As part of the deal, the UK government announced it would invest around 25% more in new and effective treatments – the first major increase in such spending in more than two decades.
Both sides hailed the agreement as a victory.
“This vital deal will help British patients get the cutting-edge medicines they need more quickly, and our leading British companies will continue to develop treatments that can change lives,” said Science and Technology Secretary Liz Kendall.
U.S. Health Secretary Robert F. Kennedy Jr. said the agreement “strengthens the global environment for innovative medicines and brings long-overdue balance to U.S.-U.K. pharmaceutical trade.”
Earlier this year, President Donald Trump and British Prime Minister Keir Starmer agreed on a framework for a trade deal that would reduce U.S. import taxes on British cars, steel and aluminum in exchange for greater access to the British market for American products, including beef and ethanol.
