Donald Trump’s threat to impose a 200% tariff on pharmaceutical imports has united Australia’s political leadership in support of the Pharmaceutical Benefits Scheme (PBS).
The Albanese government reaffirmed its commitment that the PBS is “not up for negotiation”, while opposition senator Bridget McKenzie declared bipartisan support for a scheme that ensures Australians can access affordable, world-class medicines.
The pressure stems from a complaint lodged by PhRMA, the US pharmaceutical lobby, accusing countries like Australia of “discriminatory pricing” that undermines American innovation and exports.
However, the Coalition has criticised the government’s approach to US relations, with finance spokesman James Paterson warning of “negligent and reticent diplomacy” and urging Prime Minister Albanese to personally advocate for an exemption, as the UK has achieved in steel.
Treasurer Jim Chalmers said Australia was urgently seeking clarification on the proposed tariffs and reiterated that reforming the PBS timeline—currently averaging 450 days—remains a goal, without compromising the system’s affordability.
In 2024, Australia exported $2.2 billion worth of pharmaceuticals to the US, making it a critical industry for jobs, advanced manufacturing, and bilateral trade. A steep tariff, Senator Paterson warned, could have a “profound effect” unless Canberra steps up its advocacy.
