Donald Trump's threat to impose new tariffs on branded drugs, trucks, and kitchen cabinets has raised concerns for the UK pharmaceutical industry, which remains excluded from the tariff deal agreed five months ago. The US president promised the UK 'preferential treatment' on pharmaceutical tariffs in May but has yet to deliver on his pledge.
A British government spokesperson said: 'We know this will be concerning for industry, which is why we've been actively engaging with the US and will continue to do so over the coming days. Sectors such as pharmaceuticals are critical to our economy … so we will continue to press the US for outcomes that reflect the strength of our relationship and deliver real benefits for UK industry.'
Trump unveiled sweeping import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks, which will come into force on 1 October. The latest salvo is a reminder of the incomplete nature of the UK tariff deal, which mainly centred on cars, steel, and aerospace goods.
Last week the UK rolled out the red carpet for Trump with his second state visit, including a banquet hosted by King Charles at Windsor Castle. Despite the charm offensive and the presence of several industry chiefs, including Emma Walmsley, the boss of the British pharmaceutical giant GSK, the UK sector remains in limbo.
Lale Akoner, a global market analyst at eToro, said UK concerns may not be founded as the drug tariffs would only apply to those companies that do not have, or are not planning to have, manufacturing bases in the US. 'Investors see more bark than bite. Most global pharmaceutical giants, including Europe's Novo Nordisk, Novartis, Roche, and AstraZeneca, already have US plants under way, which likely keeps them out of the firing line,' she said.
The Swiss companies Roche and Novartis said on Friday they did not expect to be hit by Trump's latest pharmaceutical tariff announcement because they were in the process of building US sites and investing there. The EU reiterated its agreement on 15% blanket tariffs included pharmaceuticals and 'represents an insurance policy that no higher tariffs will emerge for European economic operators'.
