UK Pharma Giants GSK, AstraZeneca Set to Gain from US Zero-Tariff Deal
Landmark trade agreement eliminates tariffs on over £5 billion of UK drug exports to the United States, bolstering competitiveness for British pharmaceutical firms.
British pharmaceutical giants like GSK and AstraZeneca are poised for a significant uplift after the UK and United States finalized a landmark trade agreement, establishing zero tariffs on UK pharmaceutical exports to the world's largest healthcare market.
The deal, announced on December 1, 2025, provides a major tailwind for the UK's life sciences sector, which sends pharmaceutical goods worth between £5 billion and £11 billion to the US annually. By removing the threat of import duties, the agreement is expected to lower costs, enhance profit margins, and solidify the competitive advantage of UK-based drugmakers with substantial US operations.
For companies like London-based GSK and Cambridge-based AstraZeneca, the U.S. market is a critical engine of growth. AstraZeneca, which saw its US sales grow 13% in one recent quarter, anticipates that 50% of its total revenue will originate from the United States by 2030. The elimination of tariff risk provides greater certainty for future investment and earnings, a factor well-received by the industry.
The Association of the British Pharmaceutical Industry (ABPI) lauded the agreement, stating it will help attract and retain global life science investment in the UK. "This deal is good news for NHS patients and will help to support UK life sciences competitiveness," the industry body noted in a statement.
Under the terms of the pact, the UK becomes the only country to have secured a 0% tariff on pharmaceutical exports into the US for a minimum of three years. This shields British firms from potential duties that could have been as high as 100% on certain branded drugs, a threat previously floated by the US administration.
In exchange for the tariff concession, the UK's National Health Service (NHS) has agreed to increase what it pays for innovative new medicines, marking the first significant increase in over two decades. This move is designed to address what the US government termed "long-standing imbalances in US-UK pharmaceutical trade." While the deal is a clear victory for the export-heavy UK pharma industry, some critics have raised concerns over the increased cost burden for the NHS, estimated to be an additional £3 billion over three years.
Science and Technology Secretary Liz Kendall said the deal would "ensure UK patients get the cutting-edge medicines they need sooner, and our world-leading UK firms keep developing the treatments that can change lives." The agreement is expected to bolster the UK’s standing as a global life sciences hub, protecting jobs and encouraging further research and development investment on British soil.