Strategic Shifts: What the UK’s Recent Trade Deals Mean for Medical Device Trade and Supply Chains

Last Updated on 05/06/2025 by Samantha Lewis

The United Kingdom’s evolving trade landscape—marked by deals with India, the United States, and the European Union—signals both opportunities and complexities for the UK healthcare sector, especially in medical device trade, manufacturing, and supply chains. For members of the British Healthcare Trade Association, these agreements will shape market access, investment flows, and regulatory alignment in significant ways.

UK-India Trade Agreement: Building Bridges in Device Manufacturing and Export

On 6 May, the UK and India signed a Free Trade Agreement (FTA), that is expected to vastly boost bilateral trade between the nations.

Prime Minister, Sir Keir Starmer, described the pact as “the biggest and most economically significant bilateral trade deal the UK has done since leaving the EU”, while India’s Prime Minister Narendra Modi called the agreement “historic”.

The agreement will cut levies on 90% of British products sold in the country, including on medical devices and electrical machinery, amongst other things. Within a decade, 85% of British products sold will become tariff-free in India.

Britain has also agreed to cut its own tariffs, which were relatively lower than India’s, on some products. This will mean 99% of India’s exports to Britain face no duties.

The deal will also help British companies compete for more services contracts in India.

The UK reported a total trade deficit of £8.4 billion with India at the end of 2024. The new agreement is expected to increase bilateral trade between the countries by $34 billion a year from 2040.

Effects on British healthcare companies:

• Export opportunities: The reduction or elimination of tariffs on UK-made medical devices would make British products more price-competitive in India’s rapidly expanding healthcare infrastructure market. This could benefit UK SMEs focused on diagnostic tools, surgical instruments, and digital health devices.
• Collaborative manufacturing: Trade associations anticipate increased joint ventures and contract manufacturing partnerships, as Indian firms seek UK expertise in high-quality, regulated medical equipment.
• Supply chain diversification: With global supply chains under pressure, access to Indian manufacturers could offer British firms alternative sourcing routes for components or finished devices, improving resilience.

However, concerns remain about aligning regulatory standards. Without mutual recognition agreements, duplicative compliance burdens could reduce the ease of doing business.

UK-US Trade Relations: Import and Market Access for Devices

President Trump’s blanket 10% tariff on imports still applies to most UK goods entering the US. However, the UK-US trade deal, signed at the beginning of May, offers Britain some tariff relief on exports of car, steel, aluminium and agricultural products.

This also covers products made with steel and aluminium, such as furniture, machinery and some medical devices. Steel, especially stainless steel, has a wide range of applications from surgical implements to medical equipment such as hospital beds.

For this reason, the agreement could have positive impacts for medical device businesses.

Effects on British healthcare companies:

• Streamlined exports: The US remains one of the UK’s largest export destinations for medical technologies. Agreements to improve customs procedures and digital trade infrastructure could reduce delays and costs for UK exporters.

UK-EU Trade and Cooperation Agreement: Preserving Continuity Amid Change

The EU remains the UK’s most important trading partner for medical devices, both as a supplier and a customer. On 19 May, the UK secured a new agreement which aims to cut red tape, open up market access and add nearly £9 billion to the UK economy by 2040. This comes as part of Keir Stamer’s mission to grow the economy and back British jobs.

Similarly to the US deal, British steel exports are protected from new EU rules and restrictive tariffs, through a bespoke arrangement for the UK that will save UK steel £25 million per year.   

The deal also promises to explore the recognition of professional qualifications between the two nations. Such an agreement would make it easier for British companies to move staff between the UK and EU and undertake short-term work in Europe.

Effects on British healthcare companies:

• Export: Removal of red tape in regards to import and export could mean smoother trade deals between the UK and EU.

Conclusion

While pharmaceutical headlines often dominate trade discussions, medical device manufacturers, importers, and exporters face an equally dynamic environment. The UK’s evolving trade deals offer a chance to rethink supply chains, deepen bilateral partnerships, and grow global exports—but only if regulatory clarity, logistical infrastructure, and competitive fairness keep pace. Trade associations will play a pivotal role in ensuring these deals translate into tangible benefits for their members.