UK and US Poised to Agree Zero‑Tariff Deal on Pharmaceuticals, The Times Reports
The United Kingdom and the United States are reportedly close to finalising a landmark deal that would eliminate import tariffs on pharmaceutical products shipped from the UK into the US, according to a report by The Times.
Under the proposed agreement, the UK government has committed to adjust domestic policy to make the deal possible. That includes lowering the rebate rate used when the National Health Service (NHS) purchases drugs, and revising how the cost‑effectiveness of medicines is assessed.
In tandem with those changes, the UK plans to allocate a higher share of the NHS budget toward spending on medicines — a move that could facilitate greater drug procurement under the new tariff‑free terms.
According to the Times, the deal would likely lead to increased NHS spending on medicines. However, at the time of reporting, neither UK nor US officials had publicly confirmed the agreement. Reuters noted that it was unable to independently verify the report.
What the Deal Could Mean
- Lower costs for imported medicines: By removing US tariffs on UK pharmaceuticals, the deal could make British‑produced drugs more competitive in the US market.
- Increased NHS drug purchases: With the NHS rebate model adjusted and its medicines budget expanded, the UK may be better positioned to afford a broader range of treatments.
- Potential for deeper transatlantic pharma ties: The agreement signals a move toward strengthened trade and regulatory alignment in pharmaceutical markets between the UK and US.
What Remains Uncertain
- Official confirmation pending: As of now, no formal statement from either government has confirmed the details of the arrangement.
- Implementation timeline and scope: It remains unclear how quickly the changes would take effect, and whether all categories of pharmaceutical products will be covered.
- Impact on drug pricing and access: While the deal aims to improve access to medicines for the NHS, it’s uncertain how pricing — for both existing and new drugs — will evolve under the new regime
