U.S.-UK strike deal to keep drug tariffs at zero

The UK has secured a zero-tariff deal for its pharmaceutical exports to the U.S., while agreeing to pay 25% more for new American medicines.

Transcript

00:00The UK has secured a 0% tariff on all British medicines exported to the US for at least three years

00:08in exchange for spending more on new American drugs.

00:12Under the agreement, by paying 25% more for new US medicines,

00:16British drugs, ingredients and medical devices will enter the US market tariff-free.

00:22British Business and Trade Secretary Peter Kyle said the deal safeguards an industry

00:27worth £5 billion a year in exports, calling it essential for jobs, investment and the UK's role in global life sciences.

00:35The agreement comes after US President Donald Trump had threatened 100% tariffs

00:40on branded or patented pharmaceutical products, unless companies built manufacturing plants in the US.

00:47Part of his push to make other countries pay more for medicines,

00:50he said were unfairly subsidised by American consumers.

00:54The deal makes the UK the only country in the world for now

00:57with guaranteed zero tariffs on pharmaceutical exports to the US.