Headlines
UK to offer to pay more for some drugs to appease Trump, FT reports
Published by Global Banking & Finance Review®
Posted on September 26, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on September 26, 2025
2 min readLast updated: January 21, 2026
The UK plans to increase drug payments to address US tariff threats, aiming to balance costs and maintain industry growth.
(Reuters) -The British government will offer to pay more for medicines that it buys for the National Health Service, the Financial Times reported on Friday, hoping to defuse one of U.S. President Donald Trump's top complaints after he announced steep tariff increases on branded medication.
British Prime Minister Keir Starmer's chief business adviser, Varun Chandra, will travel to Washington next week, the report added.
Reuters could not immediately verify the report.
The president has fumed because prescription drugs cost more in the U.S. than in any other country, often by nearly threefold. He has demanded that drug companies lower prices in the U.S. and raise them elsewhere. The price increases would potentially offset the impact of U.S. price cuts on drugmakers' revenues.
A UK government spokesperson did not directly address the Financial Times report. But the spokesperson said in a statement that Britain was in "a constructive dialogue with the U.S. and industry."
"We will always put patients and taxpayers first, striking the right balance between creating an environment where this innovative sector can thrive whilst ensuring best value for money," a UK government spokesperson said in a statement.
Earlier on Friday, Britain said it was pressing the United States on pharmaceutical tariffs in hope of a beneficial outcome, after Trump said a new 100% tariff would apply to firms unless they build a manufacturing site in the country.
Major British drugmakers like AstraZeneca and GlaxoSmithKline have already set up manufacturing facilities in the U.S. and have announced further investments.
The Trump administration has given drugmakers until September 29 to lower prices for some U.S. drugs voluntarily, with a threat of tariffs if the president is not satisfied.
(Reporting by Rajveer Singh Pardesi in Bengaluru; additional reporting by Gursimran Kaur; Editing by Chris Reese and Cynthia Osterman)
The UK government plans to offer to pay more for medicines purchased for the National Health Service to address concerns raised by U.S. President Trump.
President Trump has expressed frustration that prescription drugs cost significantly more in the U.S. than in other countries, often by nearly threefold.
A UK government spokesperson mentioned that Britain is engaged in a constructive dialogue with the U.S. and the pharmaceutical industry regarding drug pricing.
The Trump administration has given drugmakers until September 29 to voluntarily lower prices for certain U.S. drugs, threatening tariffs if they fail to comply.
Major British drugmakers like AstraZeneca and GlaxoSmithKline have established manufacturing facilities in the U.S. and announced further investments.
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