UK Government in Talks with Pharma Firms Over Potential US Tariffs

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The UK government is engaged in urgent discussions with pharmaceutical companies about shielding the industry from potential US tariffs, amid growing concerns over medicine shortages and supply chain disruptions. With £7bn of British drug exports to the US at stake second only to automotive exports ministers are scrambling to secure protections through trade negotiations while preparing contingency plans.

Whitehall sources describe the talks as an “active conversation” about mitigating the impact should tariffs be imposed, though officials admit it’s “impossible to read the runes” of the Trump administration’s intentions. The crisis has prompted calls from the Liberal Democrats for an emergency taskforce to safeguard medicine supplies, with health spokesperson Helen Morgan warning of “playground bully tactics” from Washington threatening NHS patients.

The pharmaceutical industry has remained publicly silent on the tariff threat but has privately lobbied against what it calls disproportionately high UK levies on branded medicines. In Europe, dozens of drugmakers have appealed to the EU for support, arguing tariffs could accelerate a corporate exodus to the US where drug prices are higher.

While Downing Street downplays risks to medicine availability, Health Secretary Wes Streeting has acknowledged tariffs could add “another layer of challenge” to fragile supply chains. Critics including former chancellor Jeremy Hunt point to the abandoned AstraZeneca vaccine plant in Liverpool a £450m project scrapped after government funding cuts as a missed opportunity to bolster domestic production.

Amid the warnings, some see potential upside for Britain’s life sciences sector. With the US cutting research jobs, industry voices suggest the UK could attract displaced scientists through global talent visas and position itself as a more stable hub for pharmaceutical innovation. Science committee chair Chi Onwurah urged ministers to adapt strategy to “geopolitical realities,” balancing threats with opportunities.

As negotiations continue, Roads Minister Lilian Greenwood stressed the government’s priority is securing “no tariffs” for critical sectors, though opposition health spokesman Edward Argar warned failure to act risks harming both patients and the economy. The outcome may hinge on whether Britain can leverage its trade talks to protect an industry that accounts for nearly 10% of all UK goods exports to America.

For more political and trade updates, visit London Pulse News.

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