Under the deal, the US agreed to exempt pharmaceutical products, pharmaceutical ingredients and medical technology of British origin from import taxes, officials said on Monday.
The Trump administration said in return that British pharmaceutical companies committed to investing more in the US and creating more jobs.
The British government said the 0 percent tariff on all its pharmaceutical exports was the lowest offered to any country. As part of the deal, it says the country’s National Health Service will spend about 25 percent more on new and effective treatments – the first major increase in such spending in more than two decades.
Officials said this means UK health authorities can now approve medicines that deliver significant health improvements but which might previously have been rejected purely on cost-effectiveness grounds, including breakthrough cancer treatments or therapies for rare diseases.
“This crucial deal will ensure that British patients get the cutting-edge medicines they need more quickly, and that our leading British companies continue to develop treatments that can change lives,” said Liz Kendall, Secretary of State for Science and Technology.
The Association of the British Pharmaceutical Industry said the deal was “an important step in ensuring patients have access to innovative medicines needed to improve wider NHS health outcomes”.
“It should also put Britain in a stronger position to attract and sustain global investment in life sciences and advanced medical research,” said Richard Torbett, CEO of ABPI.
US Secretary of Health Robert F. Kennedy Jr. said the agreement “strengthens the global environment for innovative medicines and brings long-awaited balance to the US-UK pharmaceutical trade.”
AstraZeneca is among pharmaceutical giants that have halted or halted investments in Britain in recent months. US Ambassador Warren Stephens recently warned that US companies will cut back on future investments if “changes are not made soon”.
Earlier this year, President Donald Trump and British Prime Minister Keir Starmer agreed on a framework for a trade pact that would cut U.S. import taxes on British cars, steel and aluminum in exchange for greater access to the British market for American products including beef and ethanol. (AP) DIV-DIV
Published on December 2, 2025
#Britain #reach #zerotariff #deal #pharmaceutical #products