Washington and London reached an agreement in principle that trades a temporary U.S. tariff reprieve on U.K. pharmaceuticals for U.K. concessions on drug pricing and increased medicines spending. Under the deal, the U.K. will relax certain cost‑effectiveness thresholds and raise its medicines budget — moves aimed at enabling an additional three to five product approvals annually. The accord reduces mandated manufacturer rebates to the NHS and offers U.S. tariff relief under Section 232 for three years. U.K. officials characterized the move as material to retain and attract pharma investment, while industry groups highlighted the financial and regulatory implications for manufacturers operating across both markets. The pact is likely to reshape pricing, access and manufacturing decisions and may prompt strategic capital allocations by multinational drugmakers.