Ministers are having an “active conversation” with UK pharmaceutical firms about the potential impact of US tariffs, amid calls for an emergency taskforce to make sure the supply of medicines is not disrupted.The UK government has been trying to head off the threat of tariffs to the pharmaceuticals industry, which exports about £7bn of goods to the US – just behind the £8.3bn of car exports.Ministers and negotiators are fighting to keep the exemption from tariffs for British drugmakers through a possible trade deal, but one Whitehall source said it was “impossible to read the runes” about whether the Trump administration would hit them with the levies.Government sources said ministers had been talking to industry bosses about the potential impact and what could be done to help pharmaceutical exporters if tariffs were brought in.One said it was “an important sector for the economy” and there was an “active conversation” about how the government could help if it was targeted by US tariffs.The industry has refused to comment on the possible imposition of tariffs, but it has beenlobbying the UK government hardagainst the levy on branded medicine sales to the NHS, which they say is higher than in comparable countries.In Europe, dozens of global pharmaceutical companies have sent a letter to the head of the European Commission, Ursula von der Leyen, requesting help to maintain operations in the EU in the face of US tariffs threats, including measures to compensate them for the cost of pharmaceutical innovations.They have said that tariffs would speed up the industry’s shift from Europe towards the US, where the price of medicines is higher.There are also fears that tariffs on pharmaceuticals globally could cause shocks to the supply chain, threatening the availability of medicines.The Lib Dems called for an “emergency taskforce” on Wednesday to ensure the security of medicines supply.Helen Morgan, the Lib Dem health and social care spokesperson, called on Wes Streeting, the health secretary, to “protect NHS funding and millions of patients from drug shortages resulting from Trump’s playground bully tactics”.“People need to know that the medicines they rely on just to get through their daily lives will be there when they need them, no matter what Trump threatens next, with the government making plans for stockpiling as a matter of urgency,” she said.“It is vital ministers take steps to reassure the public and prepare for every scenario that the chaotic Trump administration could force upon us.”No 10 has played down the idea that US tariffs on the trade of drugs and medicinal products will cause shortages. But Streeting has previously said that pharmaceutical tariffs could cause disruption by being “another layer of challenge” to the complicated supply chain for medicines.Jeremy Hunt, the former Conservative chancellor and health secretary, said: “Covid should have meant a lot of work has been done on securing vital supply chains for medicines – but in retrospect it is going to look like an even more tragic mistake for the government to have lost the deal I negotiated with AstraZeneca to manufacture vaccines in Liverpool.”Earlier this year, AstraZeneca scrapped plans for a £450m expansion of its vaccine manufacturing plant in Merseyside, blaming a cut in the funding on offer from the government.On Wednesday, Lilian Greenwood, the roads minister, said the government was “aiming for there to be no tariffs”, but that it was all part of a negotiation.“We know how important the life sciences sector is in the UK. Pharmaceuticals, obviously, very important to us. And that’s sure to be part of the discussions that we’re having on a trade deal, as is the UK automotive sector. And we, as a UK government, are doing all we can to protect those British industries.”Alongside the risks that pharmaceutical tariffs could cause disruption, some in the industry said it could also create opportunities for the life sciences sector, which is strong in the UK, to be seen as a safer haven for companies than the US, which is slashing scientific research jobs. There could also be the possibility of attracting US scientists with global talent visas, and creating a more favourable climate for innovation investment.Chi Onwurah, the Labour MP and chair of the science, innovation and technology committee, said: “I would like to see the government recognising that the life sciences strategy needs to adapt to reflect the geopolitical realities – the opportunities as well as the threats.”Edward Argar, shadow health secretary, said: “Tariffs could have a very real impact on highly complex pharmaceutical supply chains, on costs, and potentially on our world-leading pharma sector here in the UK, which is vital to patients and to our economy.“Unless they get a grip now, work with our US allies to secure the trade deal with the USA that is essential for our country, and take robust action to strengthen and protect our pharmaceutical supply chains, it is patients and our economy that are likely to suffer.”
Ministers in ‘active conversation’ with UK drug firms over potential tariffs
TruthLens AI Suggested Headline:
"UK Government Engages Pharmaceutical Firms Over Potential US Tariffs"
The Guardian
7.5
TruthLens AI Summary
UK ministers are currently engaged in proactive discussions with domestic pharmaceutical companies regarding the implications of potential US tariffs on the industry. The UK pharmaceutical sector, which exports approximately £7 billion worth of goods to the US, is under threat from tariffs that could disrupt supply chains and affect the availability of essential medicines. The government is striving to secure exemptions for British drug manufacturers through ongoing trade negotiations. However, uncertainty remains about the Trump administration's stance on imposing these tariffs. Officials have acknowledged the importance of the pharmaceutical industry to the UK economy and are consulting with industry leaders to explore possible measures to mitigate the impact of any tariffs that might be enacted.
The situation has prompted calls from the Liberal Democrats for the establishment of an emergency taskforce to safeguard the supply of medicines. Concerns have been raised that tariffs could exacerbate existing challenges within the pharmaceutical supply chain, potentially leading to drug shortages. While government sources have played down the likelihood of significant shortages resulting from US tariffs, there is a consensus that the situation requires careful management. Some industry representatives see potential opportunities arising from the current geopolitical climate, suggesting that the UK could position itself as a more attractive location for pharmaceutical research and development compared to the US. As discussions continue, stakeholders emphasize the need for a strategic approach to ensure the resilience and security of the UK's pharmaceutical supply chains amidst the uncertainties of international trade relations.
TruthLens AI Analysis
The article highlights the ongoing discussions between UK ministers and pharmaceutical firms regarding the potential impact of US tariffs on the industry. The UK government is aiming to prevent the introduction of tariffs that could affect the pharmaceutical sector, which is significant to the UK economy due to its substantial exports to the US.
Government's Proactive Stance
UK ministers are engaging in discussions to mitigate the risks posed by potential tariffs. The government recognizes the pharmaceutical industry as a crucial part of the economy, exporting around £7 billion worth of goods to the US. This proactive approach indicates an effort to secure the industry's future and maintain its competitive edge against other sectors, particularly automotive exports.
Concerns Over Supply Chain Disruption
There are growing fears that tariffs might disrupt the supply chain for medicines, raising concerns about the availability of essential pharmaceuticals. The call for an emergency taskforce by the Liberal Democrats underscores the urgency of ensuring a stable supply of medicines in the face of potential trade barriers. This highlights the critical nature of healthcare supply chains and the need for government intervention to protect public health.
Industry Lobbying and Response
The pharmaceutical industry has been actively lobbying the UK government against tariffs, particularly concerning branded medicine sales to the NHS. Their reluctance to comment publicly on the tariff situation may suggest a strategy to avoid inflaming tensions while continuing to work behind the scenes to influence policy. The letter from global pharmaceutical companies to the European Commission indicates a broader concern that extends beyond the UK, emphasizing the industry's interconnected nature and the potential global implications of US tariff policies.
Political Implications and Public Sentiment
The article reflects the political landscape in the UK, particularly the role of opposition parties like the Liberal Democrats in advocating for public health measures. The emphasis on safeguarding medicine supply resonates with voters who prioritize healthcare security. The potential imposition of tariffs could create political pressure on the government to act decisively in protecting vital industries and public welfare.
Market Impact and Global Trade Dynamics
This news could influence market sentiment, particularly among pharmaceutical stocks, as investors assess the potential risks associated with US tariffs. Companies heavily reliant on US exports may see fluctuations in their stock prices based on the outcome of these discussions. Moreover, the article connects to broader themes in global trade dynamics, where the interplay between national policies and international business interests shapes the landscape.
Manipulation and Transparency
While the article presents factual information, the framing of the potential tariff threat and the government's response may seek to evoke a sense of urgency and concern among the public. The language used indicates potential manipulation by emphasizing the need for government action and the importance of the pharmaceutical sector, which could be perceived as a way to rally public support against tariff policies. The reliability of the information presented is supported by the acknowledgment of ongoing discussions and lobbying efforts, although the lack of specific details about the outcomes of these conversations may limit the article's depth. Overall, the article effectively communicates the potential implications of US tariffs on the UK pharmaceutical industry and highlights the government's proactive measures to address these challenges.