Race to stop Trump tariffs hitting UK pharma industry

Pharmaceutical bosses and the government are scrambling to stop Donald Trump from slapping tariffs on medicines in a move that would significantly impact Britain’s multibillion-pound industry.

- ARCHIE MITCHELL

The US president has warned he will impose a 25 per cent levy on foreign drugs, which would devastate UK giants GlaxoSmithKline and AstraZeneca.

America is by far the largest market for the firms, making up 40 per cent of AstraZeneca’s revenue, worth more than £20bn. The government held a dinner with pharmaceutical chief executives on 2 April as Mr Trump unveiled his “Liberation Day” levies on the world.

One government source told The Times: “We’re all just reacting to whatever comes out of the White House but I can’t see a world where we wouldn’t want to protect one of our biggest export markets and we wouldn’t include that in discussions.”

Meanwhile, the Financial Times reported that Johnson & Johnson boss Joaquin Duato told a call of analysts on Tuesday the tariff could lead to medicine shortages. “There’s a reason why pharmaceutical tariffs are zero. It’s because tariffs can create disruptions in the supply chain, leading to shortages,” he said.

The British embassy in Washington is believed to be pushing for the UK to be exempted from any tariffs on pharmaceuticals, alongside US-based trade body the Biotechnology Innovation Organisation.