UK Agrees to Increase Drug Spending by 25% to Avoid US Pharma Tariffs
The UK will increase the net price paid for new medicines by 25% under a trade agreement with the US.
In return, the US will exempt UK-based pharmaceutical companies from tariffs on imports into the US for the remainder of President Trump's term.
The deal supports the US administration's agenda to equalize drug pricing between the US and other developed nations, where medicines are often cheaper.
The UK’s National Health Service will no longer require portfolio-wide concessions or rebates to offset expensive new medicines under its pricing schemes as part of the agreement.
This agreement follows prior US trade actions including a 15% tariff on pharmaceutical imports from the European Union, though that did not address drug pricing.