The United States and the United Kingdom have reached a zero-tariff agreement on pharmaceuticals, easing tensions after Washington threatened duties of up to 100% on branded drug imports. The deal removes immediate pressure from the sector and averts what analysts warned could have escalated into a major trade dispute affecting billions of dollars in medicine flows.
Officials say the agreement ensures uninterrupted access to key pharmaceutical products between both markets at a time when global medicine supply chains remain under strain. The move also stabilises prices, protects manufacturers on both sides, and prevents costs from being pushed onto patients.
The understanding is being framed as a win for continued regulatory cooperation, with both countries emphasising the importance of maintaining open channels for life-saving medical products. It also signals a broader willingness to de-escalate trade tensions following months of warnings from industry leaders, who argued that steep tariffs would undermine innovation and delay critical drug deliveries.
Final terms are expected to be integrated into ongoing US-UK trade discussions, with both governments signalling readiness to deepen cooperation in manufacturing standards, research partnerships and medical supply-chain security.
