US Tariffs and Pharma: What UK Businesses Need to Know Now
Yogan A. Patel · Posted on: July 18th 2025 · read
The UK’s pharmaceutical and life sciences sector faces opportunity and uncertainty as the US threatens steep tariffs on global imports. While EU exporters brace for a confirmed 30% tariff from 1 August, UK businesses may benefit, but only if they plan ahead.
US Threatens 200% Pharma Tariffs—But Is It Credible?
In a recent Cabinet meeting, former President Trump stated that the US may impose 200% tariffs on imported pharmaceuticals, citing national security concerns. This announcement came despite an ongoing Section 232 investigation, which began on 1 April 2025 and is not due to conclude until 27 December 2025.
While the figure raised eyebrows globally, many industry leaders view it with scepticism.
True, businesses may want to start putting a plan together in case Trump decides, out of the blue, to impose 200% tariffs. However, media output suggests that the Pharma sector has taken this with a pinch of salt, it being shrouded in low credibility given the lack of formal process or evidence.
If enacted, such a move would have massive implications. The US imported $97.1 billion in pharmaceutical products in 2024. A 10% tariff would already add $9.7 billion in costs annually. A 200% tariff could result in $194 billion in annual duties, with significant inflationary consequences for American healthcare.
"A 200% tariff would push medical costs higher and may trigger a rise in US interest rates. The timing, just before the November midterms, could also affect Republican popularity."
EU Tariffs Confirmed: UK Sees Strategic Advantage
On 11 July, President Trump confirmed that all EU-origin goods not covered by other sectoral tariffs will face a 30% tariff from 1 August 2025. The European Commission responded by threatening retaliatory tariffs worth €72 billion but has stopped short of immediate escalation.
Because the UK is no longer part of the EU, it is not automatically included in this 30% tariff package. Instead, the UK benefits from a ‘mini-deal’ with the US, signed earlier this year, which has so far kept pharmaceuticals out of the tariff spotlight…although they are not explicitly carved out yet.
UK Pharma: A Narrow Window of Opportunity
In 2024, the UK exported £6.6 billion worth of medicinal and pharmaceutical products to the United States, making pharma one of the UK’s most valuable export categories to this market.
With the EU facing a confirmed 30% tariff on exports to the US from 1 August 2025, UK exporters could gain a commercial benefit (albeit fragile), provided they navigate rules of origin and customs compliance carefully.
What Next?
Despite the public conversation, tariffs at the 200% level appear unlikely in the near term, especially without formal investigative findings. However, with inflation concerns, election-year politics, and shifting global supply chains, the risks are real.
The message to UK pharma businesses is: don’t panic, but don’t wait
MHA is working with UK pharmaceutical and life sciences companies to review manufacturing supply chains and confirm origin of products and discuss customs valuation and how this can effect tariff exposure
With trade relations evolving rapidly, proactive preparation is key to safeguarding your market access and preserving profit margins.
Connect with our Pharma & Life Sciences trade specialists today to develop your strategy now to secure success for tomorrow.
