CANBERRA: The Australian government has raised serious concerns over potential US tariffs targeting pharmaceutical and copper imports, as flagged by former President Donald Trump. Treasurer Jim Chalmers confirmed urgent discussions with US officials to clarify the implications of the proposed trade measures.
Trump recently announced plans to impose a 200 per cent tariff on pharmaceuticals and a 50 per cent levy on copper imports, with pharmaceutical companies given a transition period to relocate production to the US. Chalmers emphasised that while Australia’s copper exports to the US are minimal, the impact on pharmaceuticals could be severe.
“We are talking about billions of dollars of exports to the US when it comes to pharmaceuticals,“ Chalmers told ABC Radio. Data from the UN Comtrade database shows Australia exported pharmaceuticals worth 2.2 billion Australian dollars (US$1.4 billion) to the US in 2024, accounting for nearly 45 per cent of total pharmaceutical exports.
The US has previously criticised Australia’s Pharmaceutical Benefits Scheme (PBS), which subsidises over 900 medicines, as anti-competitive. Chalmers reaffirmed the government’s commitment to protecting the PBS, stating, “We will not trade away or do deals on the PBS in trade negotiations.”
