The UK has sealed a deal securing a zero tariff rate for all UK medicines exported to the US for at least three years, officials have said, in return for the UK spending more on new medicines.
Under the deal, announced by officials on both sides on Monday, the United States government agreed to exempt UK-origin pharmaceuticals, pharmaceutical ingredients, and medical technology from import taxes.
The Trump administration said that in return, UK drugs firms committed to invest more in the US and create more jobs.
As part of the deal, the UK government said it will invest around 25 percent more in new and effective treatments — the first major increase in such spending in over two decades.
The lofty price of medications has been a major political issue in the United States for years.
A Rand Corporation study showed Americans pay 2.5 times as much for pharmaceuticals as in France.
Trump had announced tariffs of 100 percent on imported pharmaceuticals.
But the White House has announced agreements delaying the tariffs for three years with Pfizer and AstraZeneca after they agreed to invest in US manufacturing capacity.
British Science and Technology Secretary, Liz Kendall said the deal will "ensure UK patients get the cutting-edge medicines they need sooner," while also enabling "life sciences companies to continue to invest and innovate right here in the UK. "
