The U.S. and U.K. reached an agreement that exempts British-origin pharmaceuticals from U.S. tariffs for three years in return for pricing concessions and higher UK spending on medicines. The deal includes a reduction in mandated NHS rebates and a planned increase in NICE’s cost‑effectiveness threshold to approve more drugs. The arrangement aims to spur life-sciences investment in the U.K. while avoiding Section 232 tariffs. London committed to loosening price constraints and increasing NHS drug budgets, and industry leaders framed the pact as a way to attract pharma manufacturing and R&D. The deal reshapes pricing dynamics, will affect market access strategies for global drugmakers and could influence future bilateral trade negotiations involving life‑science products.