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UK and US agree zero tariff deal on pharmaceuticals

2025-12-01 15:39
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UK and US agree zero tariff deal on pharmaceuticals

Import taxes on medicines and treatments will remain at 0% for three years, the UK Government said.

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UK and US agree zero tariff deal on pharmaceuticals

Import taxes on medicines and treatments will remain at 0% for three years, the UK Government said.

Anna WiseMonday 01 December 2025 15:39 GMTThe UK has agreed a deal with the US to provide zero tariffs on medicines exported to the country (Julien Behal/PA)open image in galleryThe UK has agreed a deal with the US to provide zero tariffs on medicines exported to the country (Julien Behal/PA)Breaking News

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The UK has sealed a deal to give the US zero tariffs on pharmaceutical products imported into the country, in return for the NHS spending more on medicines.

Import taxes on medicines and treatments will remain at 0% for three years, the UK Government said.

The Trump administration said the deal will lead to further investment by UK drugs firms in the US and create more jobs.

It comes after warnings that US pharma firms will shut down their sites in the UK if the NHS does not pay more for drugs.

The Government has agreed to increase the upper threshold for which it can buy new medicines by 25%.

Science and Technology Secretary Liz Kendall said: “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.”

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