🔗 Share this article

Elected officials have expressed alarm that the United Kingdom's series of deals with the US administration are "built on sand." This stems from revelations that a much-touted deal on pharmaceutical tariffs, which pledges zero tariffs in exchange for the NHS increasing its costs, lacks any formal legal text beyond vague headline terms published in government press releases.

An Agreement in Principle Only

The deal on drug tariffs, hailed as a "generational" achievement, exists as an "broad understanding" without a signed legal text. It has been highlighted that the official announcements from the UK and US governments present the deal in markedly contrasting terms. The British version focuses on securing "zero per cent tariffs" as a singular success, while the American announcement concentrates on the commitment for the NHS to pay 25% more for new medications.

"We face a genuine possibility that the UK government has promised concessions to increase medicine costs in return for only a verbal promise from President Trump," said David Henig, a trade expert. "It is documented he has a record of not honouring his word."

Wider Concerns Amidst a Suspended Agreement

Worries have been amplified by Washington's move to put on ice the £31bn "tech prosperity deal", which was previously heralded as "a transformative pact" in the bilateral relationship. The US cited a insufficient movement from the UK on addressing wider trade issues as the reason for the pause.

In a separate development, concessions promised for British farmers as part of an May trade agreement have still not been formally approved by the US, despite a looming January deadline. "It is our belief that the US has not finalized the reciprocal tariff rate quota," said Tom Bradshaw of the National Farmers' Union.

Private Ministerial Concerns

Behind the scenes, ministers have admitted unease that the government's agreements with the US are flimsy and unreliable. One minister reportedly said the series of agreements as "built on sand," while another characterized the situation as the "new normal" in the transatlantic relationship, marked by "greater risk and fluctuation."

Layla Moran, chair of the health select committee, remarked: "What is even more astonishing than the administration's tactics is the UK government's optimistic assumption that his administration is a trustworthy negotiator. The NHS is too precious to be gambled with."

Government Downplays Risks, Points to Gains

Ministry sources have attempted to minimize the risk of the US withdrawing from the pharmaceuticals deal. One source indicated the US pharmaceutical industry itself had been advocating for the agreement, wanting clarity on imports and pricing, making it of tangible value than the paused tech deal.

Officials admit that volatility is inherent in dealing with the Trump administration. However, they contend that the UK has achieved real benefits for businesses, such as lower steel tariffs compared to other nations. "The fact we have 25% steel tariffs, which is lower than the rate for the rest of the world, is a concrete advantage," one official said.

However, delays have surfaced in implementing the broader trade deal. Promised quotas on beef exports have yet to be finalized, and the assurance to "eliminate duties on UK metals" has remains unmet, with tariffs staying at 25%.

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