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4d ago

U.S. and U.K. Seal Three-Year Zero‑Tariff Pharma Deal Tied to Higher NHS Drug Prices

The U.S. also commits to pause pricing investigations of the U.K. sector during President Trump’s term.

A cargo ship full of shipping containers is seen at the port of Oakland, California, U.S., August 4, 2025. REUTERS/Carlos Barria/File Photo
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LONDON, ENGLAND - SEPTEMBER 19: Boxes of medication are seen on the shelves of the Keencare pharmacy, a member of the Green Light Group, on September 19, 2024 in London, England. UK Pharmacies vote today on whether to cut their opening hours from more than 60 per week to 40 in protest of the lack of government funding. The National Pharmacy Association (NPA) represents some 6,000 pharmacies across the UK and says 1500 have closed since 2016 because of higher workloads. Government funding has fallen by 40% in real terms since 2015-2016. (Photo by Leon Neal/Getty Images)

Overview

  • U.S. will apply a 0% tariff to U.K.-origin pharmaceuticals, ingredients and medical technology for at least three years under the agreement.
  • The U.K. will raise the net price it pays for new medicines by 25%, marking the first major increase in over two decades, officials said.
  • NICE’s cost-effectiveness threshold will increase from £30,000 to £35,000 per quality-adjusted life year for new drug appraisals.
  • The NHS repayment (rebate) rate on branded medicines will be capped at 15% starting in 2026, according to the USTR.
  • U.S. and U.K. officials say the pact secures investment and jobs in America from U.K. drugmakers and could speed U.K. patient access to breakthrough treatments.