United States and United Kingdom Agree to Eliminate Tariffs on Pharmaceuticals and Medical Devices
The United States and the United Kingdom have reached an agreement to eliminate tariffs on pharmaceuticals and medical devices. The deal includes provisions exempting UK-produced drugs and medical devices from Section 232 tariffs, which are typically imposed on imports for national security reasons. Additionally, the agreement requires modifications to the UK’s National Institute for Health and Care Excellence (NICE) value appraisal framework.
Under this arrangement, UK pharmaceutical products will no longer face tariff barriers when entering the U.S. market, potentially easing trade flows between the two countries in this sector. However, as part of the deal, the UK must implement changes to its NICE framework, which evaluates the cost-effectiveness of medicines and treatments for use within its healthcare system. Details regarding these specific changes to NICE’s appraisal process have not been disclosed at this time.
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Date: December 1, 2025
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