By Caroline Hug,Graham Lanktree

Copyright politico

“For the U.K., this is bound up in the requirements in the Economic Prosperity Deal,” he said.

Not only does this tie pharmaceutical tariffs to essentially paying more for medicines — the trade deal also states exemptions are contingent on Britain’s compliance with supply chain security requirements.

The industry runs on a sprawling global supply chain, with active ingredients, packaging and distribution separated across multiple countries. Trying to figure out where an active pharmaceutical ingredient comes from is challenging.

London is currently locked in talks with the U.S. government over NHS drug pricing. Science Minister Patrick Vallance has hinted the health service will need to pay more if Britain wants to stay attractive for investment.

“There is a question of how much money the NHS can put into this, how much goes on price,” he said, warning tariffs could make things worse if London doesn’t make “offers in this direction.”

Speaking at the POLITICO pub on the sidelines of the Labour Party conference, New Trade Secretary Peter Kyle labeled pharma companies “hard negotiators, [who] know how to use the media and the press to do it.”