Australia 'urgently seeking' details on Trump drug tariff plan

SYDNEY - Australia is “urgently seeking more details” on US President Donald Trump’s threat to raise tariffs up to 200 per cent on pharmaceutical imports, Australian Treasurer Jim Chalmers said on July 9.

Mr Trump had earlier announced plans to impose tariffs on pharmaceuticals, as well as a 50 per cent tariff on copper imports, during a Cabinet meeting in Washington.

“These are obviously very concerning developments,” Mr Chalmers told the Australian Broadcasting Corporation on July 9.

Mr Chalmers said while the US accounted for less than one per cent of Australia’s copper exports, the pharmaceutical industry was “much more exposed” to the impact of tariffs.

“Much more concerning are the developments around pharmaceuticals,” he said. “And that is why we are seeking – urgently seeking – some more details on what has been announced.”

Medicines and pharmaceuticals are among Australia’s top exports to the US, with around A$2.1 billion (S$1.7 billion) in shipments in 2024, according to the Australian Bureau of Statistics.

Mr Chalmers also said the Pharmaceutical Benefits Scheme (PBS), a national programme that subsidises a wide range of prescription medicines for Australians, was “not on the table” as a bargaining chip to escape the threatened tariffs.

“We are not willing to compromise the PBS. We are not willing to negotiate or trade away what is a really important feature of the health system,” he said.

For months, US lobby groups have been pressuring Mr Trump to retaliate against the PBS through tariffs, claiming the “egregious and discriminatory” pricing regime undermines American exports. REUTERS