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Britain and America are preparing to make a zero tariff agreement on pharmaceuticals

KANIKA SINGH RATHORE, 01/12/202501/12/2025

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UK government Is preparing to reach an agreement with the US to achieve zero tariffs on pharmaceutical products in the US in exchange for increased NHS American spending on medicines.

It is understood that an agreement is going to be reached soon.

It comes after warnings that US pharma companies would close their sites in the UK if the NHS does not pay more for drugs.

us President donald trump has called for changes that would level the playing field for what US customers pay for drugs compared to the UK and Europe.

The Times reported that the deal would involve reducing the sales discount rate on NHS drug prices.

This is the amount that pharmaceutical companies pay back to the NHS to ensure that it does not spend more than its allocated budget for branded medicines.

Government He is also expected to agree to raise the upper limit above which new treatments are deemed too expensive, the newspaper reports.

Earlier this month, US Ambassador Warren Stephens said US businesses would put off future investment if “changes were not made rapidly”.

This controversy is seen as a reason why America is based merck And AstraZeneca canceled or halted investments in the UK in recent months.

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