UK secures zero tariffs on medicine exports to US under new trade deal

The UK has struck an agreement with the United States that will allow British medicines to enter the American market at a zero per cent tariff for at least the next three years, officials confirmed on Monday. In exchange, the UK has committed to increasing its spending on new and innovative treatments.

Under the arrangement, the US has agreed to waive import duties on pharmaceuticals, pharmaceutical ingredients and medical technology produced in the UK, a rate described by British officials as the most preferential offered to any country. Washington, meanwhile, said the concession comes alongside commitments from UK drugmakers to boost investment and jobs in the US.

As part of the deal, the National Health Service will raise its investment in new and effective medicines by roughly 25 per cent, the first major uplift in more than 20 years.

The move is expected to widen access to advanced therapies that may previously have been rejected on cost grounds, including breakthrough cancer drugs and treatments for rare conditions.

Science and Technology Secretary Liz Kendall said the agreement would help ensure that “UK patients get cutting-edge medicines sooner” while supporting the country's life sciences sector. The Association of the British Pharmaceutical Industry welcomed the announcement, calling it a step towards improving patient access to innovative medicines and strengthening the UK’s position as a destination for global research and investment.

US Health Secretary Robert F. Kennedy Jr. said the accord “brings overdue balance” to bilateral pharmaceutical trade and supports innovation on both sides of the Atlantic.

The deal comes amid concerns over the UK’s investment climate, with major companies such as AstraZeneca recently scaling back or delaying planned projects. US ambassador Warren Stephens has also cautioned that American firms could reduce future commitments unless the policy environment improves.

Earlier this year, President Donald Trump and Prime Minister Keir Starmer reached an outline trade framework that would cut US import duties on British cars, steel and aluminium, while giving US producers, including beef and ethanol suppliers, greater access to the UK market.