🔗 Share this article

Government ministers and leading parliamentarians have expressed alarm that the United Kingdom's recent agreements with the US administration are "fundamentally unstable." This follows revelations that a much-touted deal on pharmaceutical tariffs, which pledges zero tariffs in exchange for the NHS increasing its costs, lacks any detailed agreement beyond broad headline terms published in government press releases.

A Deal Without Detail

The US-UK pharmaceuticals agreement, described as a "landmark" achievement, remains an "statement of intent" without formal ratification. Observers point out that the public statements from the UK and US governments present the deal in markedly contrasting terms. The British version celebrates securing "zero per cent tariffs" as a singular success, while the American announcement concentrates on the expectation for the NHS to pay 25% more for new medications.

"There is a serious risk that the UK government has promised concessions to raise drug prices in return for only a verbal promise from President Trump," commented David Henig, a trade expert. "We know he has a tendency for not following through on agreements."

Wider Concerns Amidst a Suspended Agreement

Concerns have been intensified by Washington's recent decision to put on ice the high-value digital accord, which was previously described as "a huge leap forward" in the bilateral relationship. The US cited a lack of progress from the UK on reducing other tariffs as the reason for the pause.

Additionally, concessions promised for British farmers as part of an May trade agreement have still not been formally approved by the US, despite a fast-approaching January deadline. "We have been informed that that the US has failed to approve the reciprocal tariff rate quota," said Tom Bradshaw of the National Farmers' Union.

Uncertainty Among Officials

In confidential discussions, ministers have admitted unease that the government's deals with Washington are unstable and unpredictable. One minister was quoted as stating the series of agreements as "resting on shaky ground," while another described the situation as the "new normal" in the transatlantic relationship, marked by "increased uncertainty and instability."

Layla Moran, a senior MP on the health committee, stated: "The only thing more surprising than Trump's temper tantrums is the UK government's optimistic assumption that his administration is a good faith actor. The NHS is not a bargaining chip."

Official Reassurances and Concrete Outcomes

Officials have downplayed the risk of the US withdrawing from the pharmaceuticals deal. One source noted the US pharmaceutical industry itself had been pushing for the agreement, seeking certainty on imports and pricing, making it less abstract than the paused tech deal.

Officials concede that instability is part and parcel of dealing with the Trump administration. However, they contend that the UK has obtained tangible results for businesses, such as reduced duties on automobiles compared to other nations. "Our achievement of 25% steel tariffs, which is more favorable than the rate for the rest of the world, is not flimsy," one official said.

Yet, delays have emerged in carrying out the broader trade deal. Promised reciprocal agricultural allowances have yet to be finalized, and the pledge to "remove tariffs on British steel and aluminium" has not been fulfilled, with tariffs staying at 25%.

Looking ahead, the two sides have scheduled to restart talks on the paused tech prosperity deal in January, following what were described as "productive" meetings between UK and US officials in Washington.