Medicines Australia CEO Liz de Somer says Trump’s 200 per cent call made no sense

Australia’s major pharma companies are on high alert over US President Donald Trump’s threat to impose hefty tariffs in a move the sector says made no sense.

US President Donald Trump’s has threatened to slap a 200 per cent tariff on Australian pharmaceutical imports.

United States President Donald Trump’s threat to slap a huge tariff on pharmaceutical imports has Australia’s pharma sector reeling and made no sense, according to an industry group.

Tariffs for the sector have been under review by the United States for a few months, but Mr Trump said overnight tariffs of up to 200 per cent would be imposed on pharmaceuticals, which sent big pharma shares falling after the ASX opened on Wednesday morning.

Medicines Australia said its members support free, fair and open trade and they were working with government agencies to seek clarification on Mr Trump’s claim that significant tariffs will be put onto Australian pharmaceuticals.

According to government figures Australia has a pharmaceutical trade deficit with the

US. In 2024, Australia exported around $2.2bn in pharmaceutical products to the US but imported around $4bn.

CEO Medicines Australia chief executive Liz de Somer said the introduction of tariffs does not make sense, would not encourage Australian manufacturers to relocate to the US, and would only increase healthcare costs in the US.

“As an industry, we fully support the Pharmaceutical Benefits Scheme, one of the longest-standing public health programs in the world,” Ms de Somer said.

US President Donald Trump’s threatened 200 per cent on pharmaceutical imports `does not make sense’.

Mr Trump said companies would be given up to a year and a half to restore supply chains before they came into effect.

On the share market multinational specialty biotechnology company CSL‘s closing down $2.23 or 0.91 per cent to $243.71.

A CSL spokesman said they were monitoring the situation.

“We are aware of recent remarks by President Trump about potential tariffs on pharmaceuticals,” he said. “We will continue to monitor the situation closely.”

Other biotechs Mayne Pharma closed down 1c to $5.20 and Neuren was up 30c or 2.2 per cent to $14.18.

The Albanese government said it was “urgently seeking” details on Mr Trump’s threats.

Federal Treasurer Jim Chalmers said on Wednesday that Washington’s latest announcement was “very concerning”.

“These are obviously very concerning developments,” Dr Chalmers told the ABC, adding that it had “been a feature of recent months that we’ve had these sorts of announcements out of DC”.

“It’s still early days. Obviously, we’ll make a more detailed assessment of what’s come out of the US in the usual way.”

Molten copper pours into an anode casting wheel.

Mr Trump has also aired the possibility of a 50 per cent tariff on Australian copper imports. Last year copper exports to the US totalled just $55m.

Mining giant Glencore said it was monitoring the situation.

“We recognise the significance of this potential policy change, but we reserve comment until the full details of the announcement are made clear,” a spokesman said.

Minerals Council of Australia chief executive Tania Constable said any tariff on copper would disrupt global trade, undermine investment confidence, and increase costs for consumers including in the United States.

“As the Treasurer has recently made clear, the global economic environment is increasingly volatile and unpredictable,” she said.

“In that context, sudden and sweeping trade actions only heighten uncertainty and constrain the ability of businesses to plan, invest and grow. The right response is not to raise barriers, but to make economies more resilient, productive and globally connected.

“While Australia’s direct copper exports to the United States are limited, trade restrictions imposed on other key trading partners have the potential of disrupting global supply chains, increasing costs, and creating uncertainty for Australian exporters.”