US President Donald Trump has flagged sweeping new tariffs of up to 200 per cent on pharmaceutical imports, a move that could hit one of Australia’s most valuable exports to the United States.
Speaking to media ahead of a cabinet meeting, Trump warned that the “very, very high” tariffs wouldn’t be implemented immediately but signalled drug manufacturers would be given “about a year, year and a half” to shift operations to the US.
“They’re going to be tariffed at a very, very high rate, like 200 per cent,” Trump said.
“We’ll give them a certain period of time to get their act together.”
The threat has raised concerns in Australia, where pharmaceutical exports to the US were worth $2.2 billion (US$1.4 billion) last year, according to the UN Comtrade database — making up more than 40 per cent of Australia’s total pharmaceutical export value.
The bulk of this—over 85 per cent—was comprised of antisera and other blood-related products.
Commerce Secretary Howard Lutnick later clarified that no final decision had been made and that the Department of Commerce’s investigation into pharmaceutical imports would conclude at the end of the month.
“And so the president will then set his policies,” Lutnick told CNBC.
“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… the tariff will be much higher.”
Outside of pharmaceuticals, Trump also revealed plans for a 50 per cent tariff on copper imports and ordered fresh investigations into lumber, semiconductors and critical minerals, signalling the potential for more trade barriers ahead.
“Today we’re doing copper,” Trump said. “I believe the tariff on copper, we’re going to make it 50 per cent.”
Pharmaceuticals and copper had previously been exempt from the US’s expanding tariff regime. But Mr Trump has repeatedly expressed frustration at the US’s reliance on foreign-made medicines and components deemed vital to healthcare, manufacturing and innovation.
The move also follows lobbying from US pharmaceutical industry leaders, who have long criticised Australia’s Pharmaceutical Benefits Scheme (PBS) — which allows the government to negotiate lower drug prices — arguing it puts American manufacturers at a disadvantage.
If implemented, the proposed tariffs could significantly impact Australia–US trade relations, particularly in the medical exports sector, and further strain global supply chains in a volatile post-pandemic economy.
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