MPs Warn British Deals with Donald Trump are 'Built on Sand'.

Elected officials have expressed alarm that the United Kingdom's recent agreements with Washington are "fundamentally unstable." This comes after revelations that a much-touted deal on drug pricing, which commits to zero tariffs in exchange for the NHS paying more, lacks any detailed agreement beyond broad headline terms outlined by government press releases.

An Agreement in Principle Only

The arrangement concerning medicines, promoted as a "landmark" achievement, exists as an "broad understanding" without a signed legal text. Critics have noted that the press releases from the UK and US governments present the deal in divergent terms. The British version focuses on securing "zero per cent tariffs" as a singular success, while the American announcement highlights the expectation for the NHS to pay significantly more for new medications.

"We face a genuine possibility that the UK government has agreed to terms to raise drug prices in return for little more than a pledge from President Trump," commented David Henig, a trade expert. "We know he has a record of not following through on agreements."

Wider Concerns Amidst a Suspended Agreement

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

Additionally, concessions promised for British farmers as part of an earlier tariff deal have still not been formally signed off by the US, despite a looming January deadline. "Our understanding is that the US has failed to approve the reciprocal tariff rate quota," said Tom Bradshaw of the National Farmers' Union.

Anxiety Behind Closed Doors

In confidential discussions, ministers have admitted unease that the government's deals with Washington are unstable and unpredictable. One minister reportedly said the series of agreements as "built on sand," while another characterized the situation as the "prevailing condition" in the transatlantic relationship, marked by "increased uncertainty and instability."

Layla Moran, a senior MP on the health committee, argued: "Perhaps most shocking than the US approach is the UK government's credulous faith that his administration is a good faith actor. The NHS is of vital importance."

Official Reassurances and Concrete Outcomes

Officials have sought to reduce the risk of the US withdrawing from the pharmaceuticals deal. One source indicated the US pharmaceutical industry itself had been lobbying for the agreement, seeking certainty on imports and pricing, making it less abstract than the paused tech deal.

Officials admit that instability is a feature of dealing with the current US leadership. However, they contend that the UK has obtained tangible results for businesses, such as lower steel tariffs compared to other nations. "Securing 25% steel tariffs, which is better than the rate for the rest of the world, is a solid gain," one official said.

Nevertheless, problems have arisen in enacting the broader trade deal. Promised reciprocal agricultural allowances have failed to be approved, and the commitment to "reduce steel tariffs to zero" has not been fulfilled, with tariffs remaining at 25%.

As negotiations continue, the two sides have agreed to resume talks on the paused tech prosperity deal in January, following what were described as "constructive" meetings between UK and US officials in Washington.

Melinda Lane
Melinda Lane

Elin is a business strategist with over a decade of experience in helping startups scale and established companies innovate in the Nordic market.

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