US and UK reach deal on pharmaceutical tariffs
The United States and the United Kingdom have reached a deal on pharmaceutical tariffs that exempts pharmaceuticals imported into the U.S. from the U.K. from those duties in exchange for the U.K.'s health system agreeing to pay more for new medicines.
The U.S. will exempt U.K. "pharmaceuticals, pharmaceutical ingredients, and medical technology from Section 232 tariffs" and will not put other sector-specific tariffs on U.K. drugs for the rest of President Donald Trump's term, according to a press release from the U.S. Trade Representative's office about the agreement in principle.
According to the release about the deal, the U.K.'s National Health Service will increase the "net price it pays for new medicines by 25%." The U.K. will also ensure that higher prices are not eroded by any factors as part of the deal.
This agreement comes after the nations agreed to further negotiations on drug pricing as part of the framework of a trade deal that nations reached in May.
"The Trump administration is reviewing the pharmaceutical pricing practices of many other U.S. trading partners and hopes that they will follow suit with constructive negotiations," U.S. Trade Ambassador Jamieson Greer said in a statement about the move.
-ABC News' Michelle Stoddart










