MPs Caution UK Deals with Donald Trump are 'Unstable'.

Government ministers and leading parliamentarians have expressed alarm that the United Kingdom's recent agreements with Washington are "built on sand." This stems from revelations that a much-touted deal on drug pricing, which pledges zero tariffs in exchange for the NHS facing higher prices, lacks any underlying contract beyond broad headline terms published in government press releases.

Lacking Legal Footing

The deal on drug tariffs, promoted as a "landmark" achievement, remains an "broad understanding" without formal ratification. Critics have noted that the official announcements 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 dwells on the agreement for the NHS to pay 25% more for new medications.

"We face a genuine possibility that the UK government has agreed to terms to increase medicine costs in return for only a verbal promise from President Trump," commented David Henig, a trade expert. "It is documented he has a tendency for not keeping promises."

Broader Instability and a Paused Tech Deal

Worries have been intensified by Washington's move to pause the £31bn "tech prosperity deal", which was previously called "a generational step-change" in the bilateral relationship. The US pointed to a insufficient movement from the UK on addressing wider trade issues as the reason for the pause.

In a separate development, concessions promised for British farmers as part of an earlier tariff deal have yet to be formally approved by the US, despite a fast-approaching January deadline. "We have been informed that that the US has failed to approve the agreed beef export quotas," said Tom Bradshaw of the National Farmers' Union.

Anxiety Behind Closed Doors

Privately, ministers have expressed concerns that the government's US-UK accords are flimsy and unreliable. One minister was quoted as stating the series of agreements as "built on sand," while another characterized the situation as the "new normal" in the transatlantic relationship, marked by "increased uncertainty and instability."

Layla Moran, a senior MP on the health committee, argued: "The only thing more surprising than Trump's temper tantrums is the UK government's optimistic assumption that his administration is a good faith actor. The NHS is of vital importance."

A Mixed Picture of Success and Setback

Ministry sources have sought to reduce the risk of the US withdrawing from the pharmaceuticals deal. One source indicated the US pharmaceutical industry itself had been advocating for the agreement, desiring stability on imports and pricing, making it less abstract than the paused tech deal.

Officials acknowledge that instability is a feature of dealing with the current US leadership. However, they maintain that the UK has secured concrete outcomes for businesses, such as lower steel tariffs compared to other nations. "Our achievement of 25% steel tariffs, which is lower than the rate for the rest of the world, is a solid gain," one official said.

Nevertheless, issues have arisen in enacting the broader trade deal. Promised access for British beef have not materialized, and the assurance to "eliminate duties on UK metals" has not been fulfilled, with tariffs staying at 25%.

Looking ahead, the two sides have scheduled to restart talks on the paused tech prosperity deal in January, following what were described as "productive" meetings between UK and US officials in Washington.

Jeffrey Pearson
Jeffrey Pearson

A seasoned business analyst specializing in Nordic markets, with over a decade of experience in economic research and strategic consulting.