U.K.-based pharmas will not face tariffs as long as Donald Trump is president, according to the agreement.
The U.S. and U.K. have reached a trade deal that will see the latter country pay 25% more for new medicines, which in turn has exempted pharma companies headquartered there from tariffs on imports into the U.S.
The deal, the details of which had previously been proposed, is the latest in President Donald Trump’s Most Favored Nation push to equalize drug pricing between the U.S. and other developed nations where medicines are currently much cheaper. The Office of the U.S. Trade Representative announced the finalized agreement on Monday.
The U.K.’s National Health Service will increase the net price paid for new medicines by 25% under the agreement. The nation will also no longer demand portfolio-wide concessions to make up for expensive new medicines under the Voluntary Scheme for Branded Medicines Pricing, Access and Growth or other rebate schemes.
In return, the U.S. will exempt U.K.-based pharma companies from tariffs for the remainder of Trump’s term as president. The U.S. has also promised to “work to ensure that U.K. citizens have access to the latest pharmaceutical breakthroughs” although no further details were provided.
Earlier in the year, the U.S. struck a trade deal with the European Union that involved a 15% tariff on pharmaceutical imports but didn’t touch on drug pricing.
