The UK and the U.S. have reached a landmark agreement to eliminate tariffs on British pharmaceutical products being exported to America.
UK-US Pharma Deal Adjusts Prices
Under the deal announced on Monday, the UK will pay 25% more for new U.S. medicines through the National Health Service (NHS) in return for a guarantee that U.S. import taxes on pharmaceuticals made in the UK will remain at zero for three years.
This would be the first time the amount that the NHS pays for medicines is due to increase in more than two decades.
The U.S. has also pledged not to challenge the UK’s pharmaceutical pricing practices in any sector investigations for the remainder of President Donald Trump‘s term.
“The Trump Administration is reviewing the pharmaceutical pricing practices of many other U.S. trading partners and hopes that they will follow suit with constructive negotiations,” stated U.S. Trade Representative Jamieson Greer.
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Rising Stakes in Pharma Trade Talks
The UK has been engaging in discussions with the U.S. regarding pharmaceutical tariffs for some time. In October, UK Finance Minister Rachel Reeves indicated that the country expected increased investment from pharmaceutical companies if it agreed to raise drug prices as part of ongoing trade talks. This came as Trump repeatedly urged European nations to pay more for American-made drugs and considered a 100% tariff on foreign pharmaceutical firms that did not establish factories in the U.S.
Oxford professor John Bell said earlier this year that the UK faced a growing risk of losing pharmaceutical investment. The warning came after the U.S. drugmaker Merck & Co. Inc. (NYSE: MRK) announced it would cancel its planned London research center, citing Britain’s slow progress on life sciences investment and the undervaluation of innovative medicines by successive governments.
The UK and the U.S. have reached a landmark agreement to eliminate tariffs on British pharmaceutical products being exported to America.
## UK-US Pharma Deal Adjusts Prices
Under the deal announced on Monday, the UK will pay 25% more for new U.S. medicines through the National Health Service (NHS) in return for a guarantee that U.S. import taxes on pharmaceuticals made in the UK will remain at zero for three years.
This would be the first time the amount that the NHS pays for medicines is due to increase in more than two decades.
The U.S. has also pledged not to challenge the UK’s pharmaceutical pricing practices in any sector investigations for the remainder of President **Donald Trump**‘s term.
“The Trump Administration is reviewing the pharmaceutical pricing practices of many other U.S. trading partners and hopes that they will follow suit with constructive negotiations,” stated U.S. Trade Representative **Jamieson Greer**.
_
## Rising Stakes in Pharma Trade Talks
The UK has been engaging in discussions with the U.S. regarding pharmaceutical tariffs for some time. In October, UK Finance Minister **Rachel Reeves** indicated that the country expected increased investment from pharmaceutical companies if it agreed to raise drug prices as part of ongoing trade talks. This came as Trump repeatedly urged European nations to pay more for American-made drugs and considered a 100% tariff on foreign pharmaceutical firms that did not establish factories in the U.S.
Oxford professor **John Bell** said earlier this year that the UK faced a growing risk of losing pharmaceutical investment. The warning came after the U.S. drugmaker **Merck & Co. Inc.** (NYSE: MRK) announced it would cancel its planned London research center, citing Britain’s slow progress on life sciences investment and the undervaluation of innovative medicines by successive governments.
<p>The UK and the U.S. have reached a landmark agreement to eliminate tariffs on British pharmaceutical products being exported to America. </p>
<h2 class="wp-block-heading">UK-US Pharma Deal Adjusts Prices</h2>
<p>Under the deal announced on Monday, the UK will pay 25% more for new U.S. medicines through the National Health Service (NHS) in return for a guarantee that U.S. import taxes on pharmaceuticals made in the UK will remain at zero for three years. </p>
<p>This would be the first time the amount that the NHS pays for medicines is due to increase in more than two decades.</p>
<p>The U.S. has also pledged not to challenge the UK’s pharmaceutical pricing practices in any sector investigations for the remainder of President<strong> Donald Trump</strong>‘s term.</p>
<p>“The Trump Administration is reviewing the pharmaceutical pricing practices of many other U.S. trading partners and hopes that they will follow suit with constructive negotiations,” stated U.S. Trade Representative <strong>Jamieson Greer</strong>.</p>
<p><em><strong>See Also: <a href="https://benzinga.com/markets/guidance/25/11/49127198/robert-kiyosaki-predicts-global-financial-meltdown-following-japans-carry-trade-closure-says-30-year-bubble-bursting" target="_blank" rel="noreferrer noopener">Robert Kiyosaki Predicts Global Financial Meltdown Following Japan’s Carry Trade Closure, Says ’30 YEAR BUBBLE BURSTING’</a></strong></em></p>
<h2 class="wp-block-heading">Rising Stakes in Pharma Trade Talks</h2>
<p>The UK has been engaging in discussions with the U.S. regarding pharmaceutical tariffs for some time. In October, UK Finance Minister <strong>Rachel Reeves</strong> indicated that the country expected<a href="https://www.benzinga.com/news/health-care/25/10/48260307/uk-seeks-more-pharma-investment-in-exchange-for-higher-drug-prices-finance-minister"> increased investment</a> from pharmaceutical companies if it agreed to raise drug prices as part of ongoing trade talks. This came as Trump repeatedly urged European nations to pay more for American-made drugs and considered a 100% tariff on foreign pharmaceutical firms that did not establish factories in the U.S.</p>
<p>Oxford professor <strong>John Bell</strong> <a href="https://www.benzinga.com/markets/large-cap/25/09/47650124/merck-exit-highlights-uk-risks-losing-pharma-investment-amid-rising-costs">said earlier this year</a> that the UK faced a growing risk of losing pharmaceutical investment. The warning came after the U.S. drugmaker <strong>Merck & Co. Inc.</strong> <a class="ticker-link" data-ticker="MRK" data-exchange="NYSE" href="https://www.benzinga.com/quote/MRK" target="_blank" rel="noopener">(NYSE:<a class="ticker" href="https://www.benzinga.com/quote/MRK">MRK</a>)</a> announced it would cancel its planned London research center, citing Britain’s slow progress on life sciences investment and the undervaluation of innovative medicines by successive governments.</p>
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<p><em>Image via Shutterstock</em></p>
<p><strong><em>Disclaimer</em>:</strong><em> This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.</em><br><br><br></p>