Cambridge’s world-renowned pharmaceutical and biotech sector has been left in a state of uncertainty after the much-anticipated UK-US trade agreement failed to include any mention of pharmaceuticals.
The deal, billed as a major breakthrough and the first since Donald Trump’s administration imposed a wave of tariffs, was described by UK Prime Minister Keir Starmer as “historic” and a “jobs-saving” agreement. However, for Cambridge’s life sciences companies, which play a key role in the £8.8 billion in pharmaceuticals exported annually to the US, the silence was deafening.
While industries such as car manufacturing and steel celebrated clear tariff reductions—down from 27.5% to 10% and to zero respectively—pharmaceuticals were notably absent. This omission has sparked concern among local industry leaders and trade experts alike, especially as the US Department of Commerce is actively investigating potential tariffs on pharma under Section 232.
“Everyone had hoped for some certainty,” said Ewan Townsend, a partner at international law firm Arnold Porter. “But with the investigation ongoing and no clear exemption framework, companies are left in limbo.”
Preferential Treatment or Empty Promises?
Downing Street insists the UK will receive “preferential treatment” in any forthcoming US tariffs on medicines. But without detail, firms across Cambridgeshire remain on edge—especially those relying on open access to US markets for growth and investment.
This development follows the UK’s recent deal with India, another headline-grabbing agreement that the Association of the British Pharmaceutical Industry (ABPI) criticised for ignoring intellectual property protections vital to UK pharma innovators.
Despite the uncertainty, the government maintains that further negotiations are ongoing. “This is jobs saved, jobs won, but not job done,” said Starmer. For Cambridge’s pharma industry, the hope is that the next round of talks finally brings their concerns to the table.
