UK scrambles for deal to stop Trump imposing 25% tariff on medicine imports amid jobs fears - as EU warns concessions could hit PM's Brexit 'reset'
The UK is scrambling for a deal to stop Donald Trump imposing tariffs on medicine imports amid fears of thousands of job losses.
The US president has said he is drawing up levies on foreign drugs, suggesting they could be 25 per cent and take effect in the 'not too distant future'.
That has sparked alarm about Britain's life sciences industry, which directly and indirectly supports more than 200,000 workers.
Ministers have confirmed the issue is being prioritised in frantic negotiations for a wider Transatlantic trade deal.
The government hopes that could wipe out all tariffs - although Mr Trump's allies have played down the prospect of the UK being exempted from the 10 per cent 'baseline' charge, while 25 per cent is being levied globally on car and steel imports.
However, Keir Starmer is facing growing tension between his pursuit of closer ties with the US and his Brexit 'reset'.
Brussels has made clear that any concessions to Mr Trump in areas such as food standards could jeopardise an agreement.
Donald Trump has said he is drawing up levies on foreign drugs, suggesting they could be 25 per cent and take effect in the 'not too distant future'
Keir Starmer is facing growing tension between his pursuit of closer ties with the US and his Brexit 'reset'
Exports to the US account for around £20billion of AstraZeneca's revenue
There have been claims that the PM is moving towards aligning with the bloc's food and veterinary standards - as well as accepting the jurisdiction of the European courts - in order to do away with border checks.
The UK's ambassador in Washington, Lord Mandelson, regards pharma as a 'big deal' and is 'very focused' on getting an exemption, according the The Times.
Exports to the US account for around £20billion of AstraZeneca's revenue.
Mr Trump has backed off some of his toughest trade threats amid a meltdown on global stock markets, and fears of a sovereign debt crisis in the US.
US vice president JD Vance raised hopes of a trade deal in an interview with the UnHerd website yesterday.
'We're certainly working very hard with Keir Starmer's government,' he said. 'The president really loves the United Kingdom. He loved the Queen. He admires and loves the King...
'I think there's a good chance that, yes, we'll come to a great agreement that's in the best interest of both countries.'
The UK has a trade surplus with the US on pharmaceuticals, and Mr Trump has insisted he wants to move manufacturing to America - where prices are often far higher than Europe.
Transport minister Lilian Greenwood said negotiators were 'working night and day to secure a trade deal'.
'We want to have open trading relationships with the world. That's what's in the interests of our British industry. We want to be able to export to the US with the minimum level of tariffs possible,' she told Times Radio.
Brussels has made clear that any concessions to Mr Trump in areas such as food standards could jeopardise an agreement. Pictured, commission president Ursula von der Leyen
'Obviously, the minimum tariff possible would be zero tariffs altogether.'
Ms Greenwood said: '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.'
