New Delhi, Dec. 2 -- The NHS is set to pay about 25% more for innovative drugs in return for zero tariffs on exports of pharmaceuticals to the US as part of a new deal under Donald Trump's government.

According to a report by The Guardian, industry sources estimate it could cost about £3bn in higher spending on drugs over the next three years but also increase the portion of the NHS budget spent on medicines for diseases such as breast cancer, asthma and motor neurone disease, where innovation is key.

In return, UK will be exempted from hefty US tariffs imposed on pharma imports that entered force on October 1. It is the only country to reach such a deal as European Union and Switzerland continue to face pharma tariffs totalling 15...