LONDON — The UK has struck a deal providing zero tariff rates on all British drugs exported to the US for at least three years, officials said on Monday, in exchange for increased UK spending on new drugs.
Under the agreement announced by officials on both sides, the United States government has agreed to exempt British-origin pharmaceuticals, pharmaceutical ingredients and medical technologies from import taxes.
The Trump administration said that in return, British pharmaceutical companies would commit to investing more in the US and creating more jobs.
As part of the deal, the UK government said it would invest around 25% more in new and effective treatments – the first significant increase in such spending in more than two decades.
Both sides regarded the deal as a victory.
“This vital deal will enable UK patients to get the latest medicines they need faster, and our world-leading UK firms will continue to develop life-changing treatments,” said Science and Technology Secretary Liz Kendall.
US Health Secretary Robert F. Kennedy Jr said the agreement “strengthens the global environment for innovative medicines and brings long-overdue balance to pharmaceutical trade between the US and UK.”
Earlier this year, President Donald Trump and British Prime Minister Keir Starmer agreed to trade pact framework it would reduce American taxes on imports of British cars, steel and aluminum in exchange for greater access to the British market for American products, including beef and ethanol.
