🔗 Share this article

Government ministers and leading parliamentarians have issued warnings that the United Kingdom's recent agreements with the US administration are "fundamentally unstable." This follows revelations that a much-touted deal on medicines, which commits to zero tariffs in exchange for the NHS facing higher prices, lacks any formal legal text beyond vague headline terms outlined by government press releases.

A Deal Without Detail

The deal on drug tariffs, described as a "landmark" achievement, is still an "statement of intent" without formal ratification. It has been highlighted that the official announcements from the UK and US governments present the deal in markedly contrasting terms. The British version focuses on securing "duty-free access" as a singular success, while the American announcement concentrates on the expectation for the NHS to pay significantly more for new medications.

"We face a genuine possibility that the UK government has promised concessions to increase medicine costs in return for nothing more than a assurance from President Trump," stated David Henig, a trade policy analyst. "It is documented he has form for not keeping promises."

Broader Instability and a Paused Tech Deal

Anxieties have been amplified by Washington's recent decision to pause the high-value digital accord, which was previously heralded as "a transformative pact" in the bilateral relationship. The US claimed a lack of progress from the UK on lowering trade barriers as the reason for the pause.

In a separate development, concessions secured for British farmers as part of an initial accord have yet to be formally signed off by the US, despite a fast-approaching January deadline. "Our understanding is that the US has not yet signed off the agreed beef export quotas," said Tom Bradshaw of the National Farmers' Union.

Uncertainty Among Officials

In confidential discussions, ministers have voiced worries that the government's deals with Washington are flimsy and unreliable. One minister described the series of agreements as "resting on shaky ground," while another described the situation as the "current reality" in the transatlantic relationship, marked by "greater risk and fluctuation."

Layla Moran, chair of the health select committee, remarked: "The only thing more surprising than Trump's temper tantrums is the UK government's naive belief that his administration is a trustworthy negotiator. The NHS is of vital importance."

Government Downplays Risks, Points to Gains

Government figures have sought to reduce the risk of the US withdrawing from the pharmaceuticals deal. One source suggested the US pharmaceutical industry itself had been advocating for the agreement, desiring stability on imports and pricing, making it more concrete than the paused tech deal.

Officials acknowledge that volatility is part and parcel of dealing with the current US leadership. However, they argue that the UK has secured concrete outcomes for businesses, such as preferential tariff rates compared to other nations. "The fact we have 25% steel tariffs, which is more favorable than the rate for the rest of the world, is a concrete advantage," one official said.

Nevertheless, problems have arisen in carrying out the May tariff agreement. Promised quotas on beef exports have failed to be approved, and the pledge to "eliminate duties on UK metals" has remains unmet, with tariffs fixed at 25%.

As negotiations continue, the two sides have scheduled to restart talks on the suspended digital agreement in January, following what were described as "very positive" meetings between UK and US officials in Washington.