Trump’s tariffs may jeopardise Australia’s $1.1 billion pharmaceutical exports, risking essential medicine prices and healthcare quality.

In Short

Trump’s tariffs on steel and aluminium raise fears they could increase medicine prices in Australia, threatening its $1.1 billion pharmaceutical export industry. Prime Minister Albanese criticises the tariffs as unjustified but has ruled out retaliation, while industry experts warn against using health policies as trading leverage.

Fears have emerged that President Trump’s tariffs could adversely affect Australia’s pharmaceutical export industry, potentially raising medicine prices.

The Trump administration recently announced 25 per cent tariffs on steel and aluminium imports, sparking concern that Australia’s pharmaceutical exports, valued at approximately $1.1 billion in 2024, could face similar tariffs.

Prime Minister Anthony Albanese condemned the US tariff actions as unjustified and detrimental, indicating he would not retaliate with similar measures.

The pharmaceutical industry is a significant part of Australia’s economy and is critical to the $18 billion federal scheme that reduces essential medicine costs.

The US aims to protect its declining steel industry amidst increasing competition from Asia, particularly Canada, Brazil, and the EU.

US companies claim that Australia’s medicine pricing policies affect their earnings, raising concerns that they might push to reconsider the Pharmaceutical Benefits Scheme (PBS).

The PBS was instrumental in lowering the costs of 930 medications last year.

The Trump administration previously blamed the high costs of US medicines partly on foreign nations benefitting from US investment without contributing fairly.

Calls have been made for the Australian government to maintain a strong stance against US influence over its domestic health policies.

Albanese has ruled out retaliatory tariffs, highlighting the negative impact of trade wars on consumers.

Economic fears escalate as consumers and businesses cut spending, reflecting rising anxiety over inflation and potential recession.

In Short

Consumer and business sentiment is declining due to economic uncertainty, leading many to cut back on spending. This shift is affecting both individual households and small businesses, causing widespread anxiety and caution in financial decisions.

Consumer and business sentiment is decreasing amid economic uncertainty, prompting many to cut back on expenses.

Discussions about economic issues, including layoffs and inflation, have increased, leading to reductions in discretionary spending. Research shows significant declines in consumer sentiment, with the University of Michigan reporting an 11% drop in March.

Many consumers are scaling back on non-essential purchases, evidenced by major airlines like Delta reducing their revenue forecasts. Walmart’s CEO remarked on observable consumer stress due to budgeting pressures.

Small business

Small businesses are also feeling the impact, with many reporting decreased sales and customer visits. Owners are experiencing heightened uncertainty, leading to precautionary measures.

Suresh Mallikaarjun, a retiree in Washington D.C., noted significant caution in his financial decisions, influenced by market volatility. Anecdotes of anxiety among consumers highlight the pervasive worry affecting spending behaviour.

As consumers tighten their budgets, the broader economic consequences could create a cycle of reduced growth, demonstrating the essential role of consumer confidence in economic performance.

Aussie rookies shine in wet race previews as reigning champion Verstappen struggles in 2025 F1 season opener.

In Short

The 2025 Formula 1 season began with strong performances from Australian drivers, particularly Oscar Piastri, while reigning champion Max Verstappen struggled. Rain is expected on race day, intensifying the competitive midfield as teams prepare for potential challenges.

The 2025 Formula 1 season kicked off with promising performances from Australian drivers, but reigning champion Max Verstappen struggled. In second practice, Oscar Piastri finished second, ahead of teammate Lando Norris but behind Charles Leclerc from Ferrari.

Rain is expected on race day, and teams are challenged by contrasting qualifying conditions. Norris had the fastest time in FP1 but shifted to a more downforce-heavy setup for FP2 to prepare for the wet conditions.

Great to be back on track and reunited with the fans here at Albert Park. A productive day with lots to take away ahead of qualifying day tomorrow. pic.twitter.com/l0b3eWZ10J

— Zak Brown (@ZBrownCEO) March 14, 2025

Rookie Jack Doohan showed potential by outperforming veteran teammate Pierre Gasly in both practice sessions. Other drivers like Yuki Tsunoda and Isack Hadjar also made strong showings, while Carlos Sainz and Alex Albon showed promise for Williams.

Verstappen finished seventh in FP2, just ahead of Nico Hulkenberg and expressed the need for improvement. His new teammate Liam Lawson acknowledged the slow pace during their runs.

In Mercedes, George Russell reported similar issues with soft tires. Lewis Hamilton, now with Ferrari, is still adjusting to his new car, lagging behind Leclerc.

As the weekend progresses, the Australian fans hope for a strong showing from Piastri, viewed as a potential podium contender. The competitive nature of the midfield was evident, with several teams showcasing the possibility of breaking into the top ranks. Practice 3 and qualifying are set to occur before the race, with significant implications for the teams.