- Australia exported $2.1billion in products to the US last year
- Government seeking detail on ‘concerning development’
President Donald Trump has threatened to slap 200 per cent tariffs on one of Australia’s biggest exports to the US.
Ahead of a US cabinet meeting later today, Trump suggested the huge tariff hike on imported pharmaceutical products will be in place by the end of next year.
Australia exported $2.1billion of pharmaceuticals to the US in 2024, according to the Australian Bureau of Statistics.
Copper is also expected to be subject to a 50 per cent tariff, although Australia’s copper exports to the US are more limited.
Trump assured that drug manufacturers will be given ‘about a year, year and a half’ to relocate to the US in a bid to escape the tariff.
‘They’re going to be tariffs at very high rate,’ he told reporters.
‘We’ll give them a certain period of time to get their act together.’
Federal treasurer Jim Chalmers said the Australian government is urgently seeking more details on the ‘concerning development’.
President Donald Trump has threatened to slap 200 per cent tariffs on pharmaceuticals – one of Australia’s biggest exports to the US
‘Our pharmaceuticals industry is much more exposed to the US market, and that’s why we’re seeking, urgently seeking, some more detail on what’s been announced,’ he told ABC Radio National on Wednesday morning.
‘But I want to make it really clear once again, as we have on a number of occasions before, our pharmaceutical benefits scheme is not something [we are] willing to trade away.
‘They’re obviously very concerning developments. We are talking about billions of dollars of exports to the US when it comes to pharmaceuticals.’
Commerce Secretary Howard Lutnick later hinted a final decision on pharmaceutical tariffs had not been made and his department’s review into the imports wouldn’t be completed until later month.
‘The president will then set his policies,’ Lutnick told CNBC.
The US president hinted at tariffs on pharmaceuticals and copper ahead of a cabinet meeting in Washington on Tuesday local time
‘And I’m going to let him wait to decide how he’s going to do it.
‘He said, “If you don’t build in America, they’re going to be a high rate”.
‘But he may consider that if you’re building in America, to give you the time to build … and then the tariff will be much higher.’
