Australia Second Biggest Export in Trump’s Tax Crosshairs

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The former U.S. president told reporters he plans to slap a 200% tariff on all imported pharmaceuticals, saying:

“If they have to bring the pharmaceuticals into the country … they’re going to be tariffed at a very, very high rate — like 200%.”

He added that companies would be given a grace period to "get their act together", but the message was loud and clear: imported medicines are in the firing line.

That’s bad news for Australia, where pharmaceuticals are the second-biggest export to the U.S., just behind beef.According to trade data, vaccines, antisera, toxins and cultures — mostly produced by Melbourne-based giant CSL — are worth more than $1.6 billion a year in exports to the States.

If the tariffs go ahead, they’d make Aussie-made medicines like flu shots far more expensive for Americans, potentially hurting CSL’s U.S. business and shaking up a major chunk of Australia’s export revenue.

While Ireland and Germany are expected to be hit hardest by the proposed pharmaceutical tariffs, Australia isn't far behind in terms of exposure.

Trump also announced a new tariff on copper, which briefly sent copper futures soaring more than 10%.But here, Australia can breathe a little easier — most of its copper exports go to Asia, not the U.S.

“Our copper exports to the U.S. are actually quite small,” Treasurer Jim Chalmers told ABC Radio National.“But our pharmaceuticals industry is much more exposed, and that’s why we’re urgently seeking more detail.”

Trump’s so-called "Liberation Day tariffs" were originally meant to take effect today, but he’s pushed them back to August 1 — giving countries a bit more time to respond.

Chalmers didn’t mince words during a press conference:

“We’ve made it very clear that we think these tariffs are bad for the U.S., bad for Australia, and bad for the global economy.”

Markets weren’t thrilled either. Wall Street closed mixed, with the S&P 500 slipping slightly, following a sharp drop the day before.

As always with Trump-era trade policies, the situation is fast-moving and high-stakes. For now, Australia — and the pharma industry — will be watching closely.

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