WASHINGTON – Today, the Office of the United States Trade Representative, the Department of Commerce, and the Department of Health and Human Services issued the following statements announcing an agreement in principle on pharmaceutical pricing between the United States and the United Kingdom.
In the historic U.S.-U.K. Economic Prosperity Deal (EPD), President Trump and Prime Minister Starmer agreed to address long-standing imbalances in U.S.-U.K. pharmaceutical trade by improving the overall environment for pharmaceutical companies operating in the United Kingdom.
The EPD also secured continued investment by U.K. pharmaceutical companies in the United States, further strengthening American leadership in pharmaceutical development and manufacturing.
“President Trump is the first American President to work with U.S. trading partners to ensure fair payment internationally for innovative pharmaceuticals and pharmaceutical ingredients.
“Today, the United States and the United Kingdom announce this negotiated outcome pricing for innovative pharmaceuticals, which will help drive investment and innovation in both countries.
WASHINGTON – Today, the Office of the United States Trade Representative, the Department of Commerce, and the Department of Health and Human Services issued the following statements announcing an agreement in principle on pharmaceutical pricing between the United States and the United Kingdom. In the old U.S. To S. -U. A K. President Trump and Prime Minister Starmer decided to address long-standing imbalances in the United States through the Economic Prosperity Deal (EPD). In S. -U. A K. pharmaceutical trade by improving the overall environment for pharmaceutical companies operating in the United Kingdom. Additionally, the EPD got U.S. investment to continue. K. pharmaceutical firms in the US, enhancing US dominance in pharmaceutical manufacturing and development.
“President Trump is the first American President to work with U. In S. trading partners to guarantee equitable payment for cutting-edge medications and pharmaceutical ingredients on a global scale. Ambassador Greer stated, “American patients have been compelled for far too long to pay a substantial premium for the same products in other developed nations in order to subsidize prescription medications and biologics.”. “Today, the United States and the United Kingdom announce this negotiated outcome pricing for innovative pharmaceuticals, which will stimulate investment and innovation in both nations. 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. The “.
“The deal reached today is a significant victory for American workers and our innovative economy. We are strengthening supply chains, creating high-quality jobs, and reinforcing America as the world’s premier hub for life-sciences investment,” said Secretary Howard Lutnick. “This deal doesn’t just deepen our economic partnership with the United Kingdom—it ensures that the breakthroughs of tomorrow will be built, tested, and produced on American soil. The “.
Pursuant to the terms of the pharmaceutical pricing agreement in principle announced today, the United Kingdom will reverse the decade-long trend of declining National Health Service (NHS) expenditures on innovative, life-saving medicines, and increase the net price it pays for new medicines by 25 percent. Furthermore, the United Kingdom will ensure that higher prices for new medicines are not materially eroded by a demand for portfolio-wide concessions under the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) or other rebate schemes. In fact, the UK has promised that the repayment rate that businesses must pay back under the current VPAG program will drop to 15% in 2026 and stay there or lower for the duration of the program.
This agreement demonstrates President Trump’s commitment to lowering drug costs for the American people and comes less than two months after he revealed the initial findings of his most-favored-nation (MFN) pharmaceutical drug pricing policy. When nations fairly share the burden of producing and paying for life-saving medicines, every citizen gains, and the fight against global disease becomes one we can actually win together,” said Chris Klomp, Director of Medicare and Deputy Administrator of the Centers for Medicare and Medicaid Services, and a lead negotiator of the agreement.
In exchange for these and other commitments, the United States has agreed to exempt U. For K. -origin medical technology, pharmaceutical ingredients, and pharmaceutical products from Section 232 tariffs and will not target U.S. In K. pharmaceutical pricing practices in any upcoming Section 301 inquiry for the term of President Trump. Additionally, the US will make efforts to guarantee that U. K. The most recent developments in pharmaceuticals are available to citizens.
“Americans should not pay the world’s highest drug costs for medicines they helped fund,” said Health and Human Services Secretary Robert F. Kennedy, Junior. “This agreement with the United Kingdom strengthens the global environment for innovative medicines and brings long-overdue balance to U. In S. –U. K. pharmaceutical trade. In demanding these reforms, President Trump demonstrated genuine bravery and leadership, and I applaud him for achieving outcomes that prioritized Americans.
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