UK and US agree zero-tariff deal on pharmaceuticals
Dec 1, 2025, 8:18 AM | Updated: 4:44 pm
LONDON (AP) — The U.K. has sealed a deal securing a 0% tariff rate for all U.K. medicines exported to the U.S. for at least 3 years, officials said Monday, in return for the U.K. spending more on new medicines.
Under the deal, announced by officials on both sides, the United States government agreed to exempt U.K.-origin pharmaceuticals, pharmaceutical ingredients, and medical technology from import taxes.
The Trump administration said that in return, U.K. drugs firms committed to invest more in the U.S. and create more jobs.
As part of the deal, the U.K. government said it will invest around 25% more in new and effective treatments — the first major increase in such spending in over two decades.
Both sides hailed the deal as a win.
“This vital deal will ensure U.K. patients get the cutting-edge medicines they need sooner, and our world-leading UK firms keep developing the treatments that can change lives,” Science and Technology Secretary Liz Kendall said.
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 pact that would slash U.S. import taxes on British cars, steel and aluminum in return for greater access to the British market for U.S. products, including beef and ethanol.
