UK and US agree zero-tariff deal on pharmaceuticals
Posted on: Dec 02, 2025 01:55 IST | Posted by: Hindustantimes
The UK has secured a 0% tariff value for all U.K. Medicines exported to the U.S. For at to the lowest degree triplet years, officials said mon, in take back for the U.K. Spending more on new medicines.
Under the deal, the US agreed to exempt UK-origin pharmaceuticals, pharmaceutical ingredients, and medical technology from import taxes.
The Trump administration said in return UK drugs firms committed to invest more in the US and create more jobs.
The UK government said the 0% rate on all of its pharmaceuticals exports was the lowest offered to any country. As part of the deal, it said the country's National Health Service will spend around 25% more in new and effective treatments — the first major increase in such spending in over two decades.
Officials said that means UK health authorities will now be able to approve medicines that deliver significant health improvements but might have previously been declined purely on cost-effectiveness grounds, including breakthrough cancer treatments or therapies for rare diseases.
Also read: America’s Tariffs Jolted the Global Economy. Its AI Spending Is Helping Save It.
“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,” said Science and Technology Secretary Liz Kendall.
The Association of the British Pharmaceutical Industry said the deal was “an important step towards ensuring patients can access innovative medicines needed to improve wider NHS health outcomes."
“It should also put the UK in a stronger position to attract and retain global life science investment and advanced medicinal research," said ABPI chief executive Richard Torbett.
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.”
Also read: US cuts tariffs on over 250 food products: How it impacts Indian exports? | World News
AstraZeneca is among pharmaceutical giants that have cancelled or paused their investments in the UK in recent months. U.S. Ambassador Warren Stephens recently warned said American businesses will cut future investments if “there are not changes made and fast.”
Earlier this year President Donald Trump and British Prime Minister Keir Starmer agreed on a framework for a trade pact that would slash US import taxes on British cars, steel and aluminum in return for greater access to the British market for US products, including beef and ethanol.
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