Donald Trump imposes 100 per cent tariff on overseas medicines, criticising Australia’s PBS pricing
A new 100 per cent tariff on imported pharmaceuticals marks the latest escalation in Donald Trump’s trade policy agenda.
US President Donald Trump has followed through on a long-signalled plan to introduce a 100 per cent tariff on imported medicines.
The latest move indicates the president is pressing ahead with his hard-line trade strategy despite a February Supreme Court decision that struck down his flagship “liberation day” tariffs.
It also highlights mounting frustration within the administration over global drug pricing frameworks, including Australia’s Pharmaceutical Benefits Scheme, which have long been criticised for contributing to higher medication costs for US consumers compared with those overseas.
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By continuing you agree to our Terms and Privacy Policy.Under the new measure, the tariff will target patented pharmaceuticals produced outside the United States, Sunrise reported.
However, the rate would drop to 20 per cent for companies that relocate manufacturing on to US soil.
A senior administration official, who briefed the media, said companies could also negotiate price reductions for American consumers that would allow the tariff to be cut to zero.
Pharmaceuticals rank among Australia’s most valuable exports to the United States, generating roughly $US1.3 billion ($1.91 billion) in trade last year, based on data from the United Nations COMTRADE database.
A significant share of these exports comes from CSL, the Melbourne-headquartered biotech giant, which has already expanded its manufacturing footprint in the US in anticipation of potential tariffs previously signalled — and later postponed — by the Trump administration.
More to come...
