The UK’s pharmaceutical industry has been thrust into a state of alarm by Donald Trump’s threat to slap 100% tariffs on imported branded drugs. This aggressive move undermines a promise of “preferential treatment” made just months ago and exposes the vulnerability of a key British sector that was left out of a major US tariff deal negotiated by Keir Starmer.
Scheduled to take effect on October 1st, the tariffs are part of a wider package that also targets European-made trucks (25%) and kitchen cabinets (50%). For the UK, the focus is squarely on the pharma sector, a cornerstone of its economy. A government spokesperson acknowledged the industry’s deep concerns and confirmed that intensive discussions with Washington are underway to find a resolution.
The timing of the announcement has been particularly galling for the UK, coming on the heels of a state visit for Trump that was laden with diplomatic overtures. Despite the presence of pharma executives like GSK’s Emma Walmsley at a royal banquet, the charm offensive failed to shield the industry. The episode highlights the transactional nature of Trump’s trade policy, where past promises and relationships offer little protection.
However, the panic may not be entirely warranted for all players. Market analysts have pointed out a crucial detail: the tariffs might only affect companies without a manufacturing base in the US. Giants like AstraZeneca, Roche, and Novartis are already investing heavily in American facilities, a move that could grant them immunity. This “bark vs. bite” scenario suggests the policy is a hardball tactic to force more companies to produce on US soil.
This selective application does little to soothe the wider European market. German truck manufacturers have been vocal in their opposition, with the VDA trade body calling the tariffs “incomprehensible” and detrimental to US interests. The EU, which has its own 15% blanket tariff agreement with the US, feels it has an “insurance policy,” but concerns are now mounting over a separate US investigation into medical devices, which could be the next frontier in this escalating trade dispute.