Trump Signals Timing for Tariffs on $1.6B in Aussie Exports

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US President Donald Trump is once again turning up the heat on global trade — this time targeting pharmaceutical imports, a move that could seriously impact Australia.

Speaking to reporters today, Trump said he’s planning to introduce tariffs on imported drugs by the end of July. He mentioned starting with a lower rate and gradually increasing it over a year to give companies time to build manufacturing facilities in the US.

“It'll probably come into effect at the end of the month,” Trump said.

That’s bad news for Australia’s pharmaceutical industry, which already faces a 10% tariff on exports to the US — a number Trump has warned could rise to 15 or even 20% by August 1.

But things could get a lot worse. Trump has floated the idea of tariffs on pharmaceuticals climbing as high as 200%, which would make Australian-made drugs significantly more expensive for American consumers. That could dent demand and squeeze Aussie exporters.

And the stakes are high: pharmaceuticals are Australia’s second-biggest export to the US, just behind beef, and worth more than $1.6 billion a year, according to the Observatory of Economic Complexity.

Australia’s Treasurer Jim Chalmers recently told ABC Radio that the pharmaceutical sector is "exposed" to these kinds of moves, acknowledging how vulnerable the industry is to shifts in US trade policy.

For Trump, the goal is clear — he wants to bring manufacturing jobs back to America, even if it means adding pressure on long-standing trade partners like Australia.

If these new tariffs go ahead, Australian drugmakers could be in for a tough time — and it might not be long before we see ripple effects through the wider economy.

Stay tuned with Aus News Lanka – the leading platform for news for Australians.