LONDON : The announcement came late Tuesday, with U.S. Health Secretary Robert Kennedy Jr. describing the pact as a significant win for global innovation. He said the agreement “strengthens the global environment for innovative medicines” and finally brings “a long-awaited balance in pharmaceutical trade between the two countries.” Kennedy underscored that Americans “should not have to pay the highest drug prices in the world for treatments they helped fund,” signalling a renewed push for affordability in the U.S. market.

Under the terms of the deal, the United Kingdom has agreed to higher NHS purchase prices for medicines in exchange for the guarantee that U.S. tariffs on pharmaceutical imports will remain at zero until 2028. The negotiations follow earlier discussions in Washington about raising tariffs on branded medications to as high as 100 percent.

Pharmaceuticals remain one of Britain’s biggest export categories to the United States, and UK Business and Trade Minister Peter Kyle called the agreement a “vital safeguard” for the economy. He noted that the pact ensures “at least £5 billion a year” in British pharmaceutical exports will continue to enter the U.S. market duty-free, supporting thousands of jobs and strengthening investment prospects. Kyle added that the outcome positions the UK to advance its ambition of becoming a global hub for life sciences.

The pact also follows the broader UK–US trade agreement signed last June, in which the U.S. president reduced tariffs on most British goods to 10 percent.