Trump admin strikes zero tariff pharmaceutical deal with Britain — a move welcomed by drugmakers
The United States and Britain reached a new pact on Monday that will lift Section 232 and any future Section 301 tariffs on UK‑made medical technology and pharmaceutical products. In return, the UK agrees to increase the net price it pays for new U.S. medicines by 25 % and to overhaul how it values and approves drugs. “The United States and the United Kingdom announce this negotiated outcome pricing for innovative pharmaceuticals, which will help drive investment and innovation in both countries,” U.S. Trade Representative Jamieson Greer said in a statement.
Under the deal, UK‑originated drugs and drug ingredients will be exempt from those tariffs, and the U.S. will reciprocally lift tariffs on British imports. At the same time, the UK will raise its “quality‑adjusted life year” threshold at NICE from £30,000 to £35,000 per year, affecting all new treatments—not just U.S. products—while leaving current drug prices unchanged. The government says this move lets it keep pace with the commercial realities of pharmaceutical companies today.
Industry groups such as ABPI welcomed the agreement, noting it should help patients access new medicines and attract more investment. Shares in GSK and AstraZeneca were largely flat, though the UK represents only a small slice of their global revenue. GSK praised the deal as “good foundations” that could cement the UK as a globally attractive life‑sciences hub.
Bristol Myers Squibb’s chief executive Chris Boerner echoed this optimism, saying “This agreement is a sign of progress and one that creates an environment conducive to our continued presence in the UK.” He added that BMS expects to invest up to $500 million in the next five years under the new terms. The British Chambers of Commerce also lauded the deal, pointing out that pharmaceuticals make up a fifth of all UK exports to the U.S. by value and that the UK now has an advantage few others enjoy. (1 USD = 0.7540 GBP.)
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