UK Exports Surge Despite 10% US Tariffs, Pharma Deal Offers Hope for Zero Duties on Medical Goods

Listeners, welcome to the United Kingdom Tariff News and Tracker, your focused look at how US trade policy and Trump-era tariffs are shaping the UK economy right now. According to the UK Office for National Statistics, UK exports of goods to the United States jumped by about 27% in October 2025 compared with the previous month, even though they “have remained relatively low since the introduction of tariffs in April.” At the same time, imports from the US surged by more than 50%, widening the UK’s overall trade deficit. The ONS notes that the tariff shock earlier in the year is still a major factor behind this weaker trade position with America. Those tariffs are anchored by what legal analysts at The Lawyer describe as a 10% baseline US tariff on almost all UK goods entering the United States, with higher rates for certain countries and sectors. That 10% line is now the backdrop for nearly every British exporter selling into the American market, and it arrives at a time when, as Morningstar reports, the UK economy has slipped back into contraction, increasing pressure on the Bank of England to cut interest rates. Morningstar points out that the UK now faces a 10% tariff on most goods exported to the US, higher than during the first quarter of the year and a clear drag on growth. There are, however, important carve‑outs and lobbying efforts that listeners should watch. Flexport’s latest global logistics update reports that Washington and London have reached an agreement in principle on pharmaceutical pricing: the UK has agreed to raise the net price it pays for new medicines by around 25%, and in return the US will exempt UK pharmaceuticals, pharmaceutical ingredients, and medical technology from future Section 232 tariffs once those duties take effect, and will avoid targeting UK drug pricing in any Section 301 investigation during the remainder of President Trump’s term. Pharmaphorum notes that this deal effectively moves UK medicines toward a zero‑tariff environment and is seen as a key step in restoring investor confidence in the UK life sciences sector. Not every industry is getting relief. The drinks coalition “Toasts Not Tariffs” told The Spirits Business that it has just delivered another petition to President Trump urging the immediate removal of US tariffs on EU and UK spirits and wine. The group warns that if the current 10% US tariff on UK spirits continues, the consequences for distillers, supply chains, and hospitality jobs on both sides of the Atlantic “will be severe.” For UK businesses, the picture is now sharply split: a 10% baseline US tariff on most goods, growing pressure on sectors like spirits, but the prospect of zero tariffs for high‑value pharmaceuticals and med‑tech if the new deal is fully implemented. Thanks for tuning in, and don’t forget to subscribe so you never miss an update from United Kingdom Tariff News and Tracker. This has been a quiet please production, for more check out quiet please dot ai. For mor This content was created in partnership and with the help of Artificial Intelligence AI.