UK-US pharma pact guarantees tariff-free exports

UK-US pharma pact guarantees tariff-free exports

Anabelle Colaco
03 Apr 2026, 08:03 GMT+

LONDON, U.K.: Britain has agreed the full text of a pharmaceutical trade partnership with the United States, securing tariff-free access for its medicines to the U.S. market under a wider bilateral trade deal.

The agreement commits Washington to a zero tariff on British pharmaceutical exports for at least three years, with the UK government saying it would make Britain the only country to enjoy such access for medicines.

The deal forms part of a broader U.S.-UK trade accord signed last year, though the pharmaceutical provisions were negotiated separately and their outline terms were first unveiled in December.

British business and trade minister Peter Kyle said the agreement would support the country's pharmaceutical sector and protect high-skilled jobs, while highlighting the strength of economic ties between the two nations.

The White House and the U.S. Department of Health and Human Services did not immediately respond to requests for comment.

Pharmaceuticals account for about one-fifth of Britain's goods exports to the United States by value, according to government data, making the sector a key pillar of bilateral trade.

Britain also said the agreement protects medical technology exports from additional tariffs and includes assurances related to a proposed U.S. "most-favored-nation" drug pricing policy, which aims to align American medicine prices more closely with those in other developed economies.

The pharmaceutical provisions build on a wider trade framework agreed by U.S. President Donald Trump and British Prime Minister Keir Starmer in June 2025.

Separately, British drugmakers AstraZeneca and GSK had already reached most-favored-nation pricing agreements with the Trump administration last year, which included three-year protection from potential U.S. pharmaceutical tariffs.

Those arrangements reflect Washington's broader strategy of using tariff threats as leverage in negotiations with the pharmaceutical industry.

Following the agreement on the full text, a GSK spokesperson welcomed the development, saying it provided certainty on zero tariffs for medicines, improved the operating environment for British companies, and rewarded innovation.

The spokesperson added that further work would now be required to implement the measures outlined in the agreement.

More Britain News

Access More

Sign up for Britain News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!