Overview
- Washington confirmed British pharmaceuticals and medtech will be exempt from new US tariffs under a time‑limited arrangement reported as three years.
- The US pledged not to launch trade investigations into UK drug pricing during President Trump's current term, effectively until early 2029.
- UK policy changes will allow roughly a 25% increase in net prices for specified new medicines, enabled by adjustments to NICE’s valuation framework and reduced manufacturer paybacks to the NHS.
- The accord follows Trump’s threats of import surcharges of up to 100% on branded or patented medicines, which had unsettled exporters.
- The deal sits alongside an earlier pact capping most UK export tariffs to the US at 10%, while many EU pharmaceutical imports still face US duties of about 15%.