President Donald Trump’s latest trade plan would impose a 100% tariff on British-made pharmaceuticals unless companies set up production in the United States. The EU and Japan remain exempt due to earlier trade deals, leaving the UK exposed as negotiations on drug tariffs continue. Britain supplies about 3.3% of US pharmaceutical imports, making the stakes high for both industries.
Britain could face steep new trade penalties after US President Donald Trump announced a plan to impose a 100% tariff on pharmaceuticals unless companies build manufacturing facilities in the United States. The move is part of a wider push by Trump’s administration to bring drug production onshore and reduce reliance on foreign supply chains.
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According to sources cited by Reuters, the European Union and Japan are exempt from the measure because both secured trade deals that capped pharmaceutical duties at 15%. Britain, however, remains vulnerable, as the pharmaceutical tariff was not fully settled in its earlier trade agreement with Washington.
Pharmaceutical products are among Britain’s key exports, and the US is one of its largest markets. US trade data shows that drugs imported from Britain made up about 3.3% of total pharmaceutical imports in 2024. Industry experts warn that a 100% tariff could sharply increase costs for British firms and limit their competitiveness in the American market.
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The tariff threat highlights the shifting landscape of US trade policy, which has increasingly tied market access to domestic investment. While Trump argues the plan will strengthen American supply chains and reduce dependence on foreign drugs, critics caution that it risks disrupting global trade ties and driving up healthcare costs for US consumers.
Negotiations between the UK and US on the issue are still ongoing, with business leaders urging both sides to find a compromise that protects investment and keeps critical medicines affordable and accessible.