UK will increase its spending on medicine under a zero-tariff deal with
the US
[December 02, 2025]
LONDON (AP) — The U.K. has secured a 0% tariff rate for all U.K.
medicines exported to the U.S. for at least three years, officials said
Monday, in return for the U.K. spending more on new medicines.
Under the deal, the U.S. agreed to exempt U.K.-origin pharmaceuticals,
pharmaceutical ingredients, and medical technology from import taxes.
The Trump administration said in return U.K. drugs firms committed to
invest more in the U.S. and create more jobs.
The U.K. government said the 0% rate on all of its pharmaceuticals
exports was the lowest offered to any country. As part of the deal, it
said the country's National Health Service will spend around 25% more in
new and effective treatments — the first major increase in such spending
in over two decades.
Officials said that means U.K. health authorities will now be able to
approve medicines that deliver significant health improvements but might
have previously been declined purely on cost-effectiveness grounds,
including breakthrough cancer treatments or therapies for rare diseases.
“This vital deal will ensure U.K. patients get the cutting-edge
medicines they need sooner, and our world-leading UK firms keep
developing the treatments that can change lives,” said Science and
Technology Secretary Liz Kendall.
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 The Association of the British
Pharmaceutical Industry said the deal was “an important step towards
ensuring patients can access innovative medicines needed to improve
wider NHS health outcomes."
“It should also put the U.K. in a stronger position to attract and
retain global life science investment and advanced medicinal
research," said ABPI chief executive Richard Torbett.
U.S. Health Secretary Robert F. Kennedy Jr. said
the agreement “strengthens the global environment for innovative
medicines and brings long-overdue balance to U.S.–U.K.
pharmaceutical trade.”
AstraZeneca is among pharmaceutical giants that have cancelled or
paused their investments in the U.K. in recent months. U.S.
ambassador Warren Stephens recently warned said American businesses
will cut future investments if “there are not changes made and
fast.”
Earlier this year President Donald Trump and British Prime Minister
Keir Starmer agreed on a framework for a trade pact that would slash
U.S. import taxes on British cars, steel and aluminum in return for
greater access to the British market for U.S. products, including
beef and ethanol.
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