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It comes after warnings that US pharma firms will shut down their sites in the UK if the NHS does not pay more for drugs.
Anna WiseMonday 01 December 2025 14:55 GMT
open image in galleryThe UK Government is preparing to strike a deal with the US securing zero tariffs on pharmaceuticals products into the US (Ben Birchall/PA) (PA Archive)
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The UK Government is preparing to strike a deal with the US, securing zero tariffs on pharmaceutical products into the US in return for an increase in NHS spending on American medicines.
It is understood that an agreement is due to be made imminently.
It comes after warnings that US pharma firms will shut down their sites in the UK if the NHS does not pay more for drugs.
US President Donald Trump has called for changes that will level the playing field in terms of what American customers pay for drugs compared with those in the UK and Europe.
The Times reported that the deal will include lowering the sales rebate rate on NHS drug prices.
This is the amount that drugs firms pay back to the NHS to ensure it doesn’t overspend its allocated budget for branded medicines.
The Government is also expected to agree to increase the upper threshold for which new treatments are deemed to be too expensive by 25%, the newspaper reported.
Earlier this month, US ambassador Warren Stephens said further American businesses will axe future investments if “there are not changes made and fast”.
The row has been seen as a reason why US-based Merck and AstraZeneca cancelled or paused investments in the UK in recent months.
