Trump’s trade war could raise Australian medicine costs and limit availability, complicating PBS negotiations and tariff impacts.

In Short

Concerns arise in Australia over a US-Australia trade dispute affecting medicine costs and the Pharmaceutical Benefits Scheme. Potential US tariffs could raise drug prices and impact access, despite the US arguing for higher prices to reflect drug development costs.

Talks of a trade dispute between the US and Australia regarding medicine costs have raised concerns among Australians.

The potential impact on the Pharmaceutical Benefits Scheme (PBS) and tariffs on Australian drugs entering the US raises questions about drug prices and availability.

The PBS offers subsidised medicines, maintaining low out-of-pocket costs for consumers. Drug companies must submit evidence to the Pharmaceutical Benefits Advisory Committee (PBAC), which assesses the cost-effectiveness of drugs.

Donald Trump’s imposition of tariffs could prompt a rise in medicine prices or lead to shortages. Price negotiations occur between the government and drug companies, with consumers paying a fixed co-payment regardless of the drug’s cost to the government.

The US argues the PBS undervalues innovative drugs, seeking higher prices that reflect development costs. However, the PBAC aims to keep prices low, benefiting consumers.

Tariffs on Australian pharmaceuticals exported to the US could hike prices and reduce demand for Australian-made drugs, although most medicines in Australia are sourced overseas.

Even if Australia retaliated with tariffs on US pharmaceuticals, it would likely harm access to innovative drugs and lead to increased negotiation restrictions.

While the trade negotiations’ outcome remains uncertain, it is unlikely the US can significantly influence Australian pharmaceutical pricing, especially with anticipated reductions in consumer drug costs.

Trump signs executive order to dismantle Department of Education, triggering concerns over impact on American education system.

In Short

President Trump has signed an executive order to start closing the Department of Education, stating education should be managed at the state level.

The decision has raised concerns among education advocates about the potential negative impact on federal education programs and student access.

President Trump signed an executive order on Thursday to begin the process of closing the Department of Education.

This move aligns with his ongoing campaign promise, although specific details were not provided at the signing ceremony.

The order follows a recent announcement from the department about plans to reduce its workforce significantly, raising concerns about the future of numerous federal education programs.

During the signing ceremony, Trump stated that education should be managed at the state level. He assured that critical funding for low-income schools, special needs students, and Pell Grants would be maintained and redistributed to other agencies.

Trump explained the urgency of dismantling the department, asserting that it is not beneficial to the American education system.

In response to this decision, education advocates expressed strong concerns, warning that abolishing the department could disrupt the education system and negatively affect students.

They argue that without federal oversight, college access could decline, student loan defaults could rise, and unscrupulous institutions could exploit students.

Leaders agree to Middle East negotiations and energy infrastructure ceasefire.

A pivotal 90-minute conversation between President Donald Trump and Russian President Vladimir Putin could mark a crucial step toward ending the war in Ukraine.

The White House confirmed that the two leaders agreed to begin immediate negotiations in the Middle East and implement a ceasefire on energy infrastructure.

Trump described the discussion as “very good and productive,” noting that both Putin and Ukrainian President Volodymyr Zelenskyy are eager to see the conflict come to an end.

“Many elements of a Contract for Peace were discussed,” Trump said on Truth Social, adding that the process to end the war is now “in full force and effect.”

As part of the talks, Putin reportedly agreed to a mutual 30-day pause on strikes targeting energy facilities and ordered Russian forces to comply.

In a further sign of potential de-escalation, Moscow has pledged to return 23 seriously wounded Ukrainian soldiers to Kyiv as a goodwill gesture.

While Trump remains optimistic about progress, he acknowledged that “many elements of a Final Agreement” still need to be resolved.

As diplomatic efforts intensify, global attention is now focused on whether negotiations in the Middle East can pave the way for a lasting ceasefire and eventual peace deal.

Ira Chaleff, a political commentator, bi-partisan leader in Congress, and author, “How To Stop a Tyrant: The Power of Political Followers to Make or BRAKE a Toxic Leader” joins Veronica Dudo to discuss.