‘Get act together’: Trump threatens Australian pharmaceuticals unless shifting production to US

More than $2 billion in Australian pharmaceutical products sold to the US are at risk of being slugged with whopping 200 per cent tariffs threatened by Donald Trump.

More than $2 billion in Australian pharmaceutical products sold to the US are at risk of being slugged with whopping 200 per cent tariffs threatened by Donald Trump.

The federal government has sought clarification from the White House following the US President’s shock announcement on Wednesday he planned to hit medical companies with “very, very high” tariffs, but would give them up to 18 months to “get their act together” and shift production to America.

Mr Trump also flagged a new 50 per cent tariff on copper imports, which would have a modest direct impact on Australia’s $55 million worth of sales to the US.

US President Donald Trump plans to hit medical companies with “very, very high” tariffs if they do not shift production to America. Picture: AP Photo/Evan Vucci

That represents less than one per cent of Australia’s total copper exports, but the US is Australia’s largest market for pharmaceuticals, with sales totalling about $2.06bn in 2024.

More than 90 per cent of those exports comprise of blood products, such as plasma-derived medicines used to treat haemophilia and some immunocompromised conditions, while some seasonal flu and bird flu vaccines are also sold to America.

Anthony Albanese has not spoken to Mr Trump since the latest tariff proposal, but Treasurer Jim Chalmers said engagement between Australian and American officials was occurring “more or less on a continuous basis”, and suggested the Prime Minister would “no doubt at some point” speak with the US President again.

Prime Minister Anthony Albanese has not spoken to Mr Trump since the latest tariff proposal. Picture: Max Mason-Hubers/NewsWire

Treasurer Jim Chalmers said the Pharmaceutical Benefits Scheme was “not on the table in any negotiation” with the US. Picture: David Gray/AFP

Mr Chalmers said the government would take the time to “properly understand” the costs and consequences of Mr Trump’s latest proposal, noting the pharmaceutical tariffs were the more “concerning” for Australia.

“We think that these tariffs inject an unnecessary element of uncertainty, unpredictability and volatility in the global economy,” he said.

Despite the potential economic impact, Mr Chalmers said the Pharmaceutical Benefits Scheme was “not on the table in any negotiation” with the US.

“The Albanese Labor Government is about strengthening the PBS in the interests of our people, not weakening it in the interests of American multinationals,” he said.

In April, the US Department of Commerce launched an investigation into possible tariffs on pharmaceuticals, with multiple Australian manufacturers contributing submissions to the ongoing process.

The US Department of Commerce launched an investigation in April into possible tariffs on pharmaceuticals.

Industry sources said they suspected Mr Trump might have begun to receive briefings on the potential outcomes of that review, which then prompted his remarks on Wednesday.

“We’re going to give (drug manufacturers) about a year, a year and a half to come in, and after that, they’re going to be tariffed,” Mr Trump said.

“They’re going to be tariffed at a very, very high rate, like 200 per cent. We’ll give them a certain period of time to get their act together.”

Coalition trade spokesman Kevin Hogan said Mr Albanese was “failing” on Australia’s relationship with the US.

“Australian exporters are facing uncertainty with no resolution since tariffs were imposed earlier this year and no voice at the table fighting for them,” he said.

“It is frankly embarrassing that our Prime Minister has still not secured a meeting with President Trump.”