Trump’s threat to slam pharmaceuticals with 200% tariffs rattles Australia
Treasurer Jim Chalmers said Canberra is ‘urgently seeking’ more detail on the US president’s plan
“These are obviously very concerning developments,” Chalmers told Australian Broadcasting Corp. radio in an interview on Wednesday. “Our pharmaceutical industry is much more exposed to the US market. And that’s why we’re seeking – urgently seeking – some more detail on what’s been announced.”
Chalmers said that while the US accounted for less than 1 per cent of Australia’s total copper exports, the drug sector’s exposure was larger.
Australia exported A$2.1 billion (US$1.4 billion) worth of medicinal/pharmaceutical products to the US in 2024, or 38 per cent of the nation’s overseas shipments of pharmaceuticals. That accounted for 0.4 per cent of total goods exports, according to AMP Ltd.
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Trump imposes 25% unilateral tariffs on Japan, South Korea amid slow negotiation progress
Earlier this week, the Guardian newspaper reported some of the most influential lobby groups in Washington are pushing the administration to retaliate against Australia’s treatment of US exporters under its A$18 billion Pharmaceutical Benefits Scheme, pointing to drug approvals and domestic manufacturing incentives as proof of unfair “freeloading”.