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.
