Britain’s biggest pharmaceutical firms are scrambling to unravel the impact of a shock tariff announced by Donald Trump.
AstraZeneca and GSK – two of the FTSE 100’s largest companies – are among the global drugs giants seeking to clarify how they would be affected by a 100 per cent levy.
The British Chambers of Commerce said there was ‘fresh uncertainty for the UK’s pharmaceutical companies’.
Trump yesterday stunned the industry as he declared tariffs would be imposed on imports of branded pharmaceutical products from next Wednesday unless the companies involved were building a manufacturing site in the US.
New, branded drugs are the major money-spinners for pharma giants.
UK ministers are pressing for a better deal. A government spokesman said: ‘Sectors such as pharmaceuticals are critical to our economy… so we will continue to press the US for outcomes that reflect the strength of our relationship and deliver real benefits for UK industry.’
New move: Britain’s biggest pharmaceutical firms are scrambling to unravel the impact of a shock tariff announced by Donald Trump
In a trade deal in May, Britain and the US said they intended to negotiate ‘significantly preferential treatment outcomes on pharmaceuticals’.
It was unclear yesterday whether Britain would be protected by that. In the EU, Irish trade minister Simon Harris insisted new tariffs would be capped at 15 per cent because of its recent agreement with the US.
Britain’s deal with America imposes a baseline tariff of 10 per cent but it was not known whether it would ultimately shield the UK.
GSK employs 15,000 people in the US and has five manufacturing sites. It has announced plans to invest £22billion in America over the next five years.
Astra employs more than 18,000 people in the US and has been shifting more production there. Shares in both companies fell in early trading before recovering as traders digested the potential likely impact.
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