UK-US agree zero-tariff deal on pharmaceuticals — impact for NHS and sciences.

The UK and US have made a historic deal that will put zero tariffs on all UK-made pharmaceuticals, medical ingredients, and medical technology exports to the US for at least three years. This is expected to boost British investment in life sciences, increase manufacturing capacity, and strengthen the UK's position as a global biomedical hub. In return, the UK will raise the NHS's payments for new patented drugs by about 25% starting in 2026. NICE will also raise its cost-effectiveness threshold from £20,000–£30,000 to £25,000–£35,000 per QALY, which will speed up the approval of new cancer drugs, rare disease treatments, and advanced biologics that were thought to be too expensive before. The deal also lowers the VPAG branded-medicines rebate rate to a maximum of 15%. This makes it easier for pharmaceutical companies to make money and encourages them to invest in research and development over the long term. Analysts say the pact shields UK businesses from US tariffs that are about to go into effect and makes the export market more secure. This might lead to more jobs in science, research, and manufacturing.

The arrangement gives NHS patients earlier access to new cures, but critics warn that the higher drug spending obligations could put a burden on NHS funds and make the continuing debate over cost and innovation even more heated. The zero-tariff agreement is a big change in UK-US economic ties and a big change in how people in the UK can get medications. As UK biotech companies get into the US market without paying tariffs, industry groups say there will be a lot of new alliances. Health-economy specialists also say that we need to stay alert to make sure that rising prescription costs don't make it harder for some people to get NHS treatment in certain areas.