Latest news with #MedicinesAustralia
ABC News
09-07-2025
- Business
- ABC News
Pharmaceutical industry responds to Trump's massive tariff threat
The US president has flagged taxes of 200 per cent on pharmaceutical imports and the CEO of Medicines Australia says it 'doesn't make sense'.
Sky News AU
09-07-2025
- Business
- Sky News AU
Prime Minister Anthony Albanese blamed for escalation in United States' trade war amid flailing Trump relationship
The Albanese government has been blamed for neglecting the US relationship after President Trump announced massive tariffs on several major export industries. President Trump announced on Wednesday his intention to introduce tariffs of up to 200 per cent on pharmaceutical products and 50 per cent on copper. The punitive trade measures threaten to devastate drug manufacturers in Australia, whose exports to the US were valued at about $2 billion—40 per cent of exports—in 2024. Meanwhile, the Albanese government remains unable to meet with President Trump or secure exemptions from the tariffs, despite other countries negotiating trade deals. Shadow Trade Minister Kevin Hogan has held Mr Albanese responsible and accused him of presiding over a collapse in the Australia-US relationship, resulting in punitive trade barriers. 'This should have been raised at the highest levels months ago,' Mr Hogan said in a statement on Wednesday. 'It is frankly embarrassing that our Prime Minister has still not secured a meeting with President Trump. 'The Prime Minister must act before more damage is done… Labor has dropped the ball and Australian businesses are paying the price. This is about our national interest.' Medicines Australia, which represents the research-based pharmaceutical industry of Australia, called on the Albanese government to seek clarification on the issue. "Australia exported around A$2.2 billion in pharmaceutical products to the US but imported around A$4 billion. The introduction of tariffs does not make sense." Medicines Australia said. "We are working with government agencies to seek clarification on the recent suggestion of significant tariffs on Australian pharmaceuticals." The Reserve Bank of Australia has also issued an unusually direct warning about the consequences of President Trump's trade agenda. Speaking at the Australian Conference of Economists on Wednesday, RBA Deputy Governor Andrew Hauser said the global economy was facing a 'profound' shock. 'How worried are we about (Trump's tariffs)? We are very, very focused on it. The level of uncertainty is clearly elevated,' Mr Hauser said. 'The first-round effects of these changes in US tariffs are probably relatively minor, but the effects on the broader global economy are profound.' Treasurer Jim Chalmers confirmed on Wednesday the government was 'very concerned' and had reached out to the Trump administration. 'Much more concerning are the developments around pharmaceuticals,' Mr Chalmers told ABC Radio National. 'Our pharmaceuticals industry is much more exposed to the U.S. market, and that's why we're urgently seeking some more detail on what's been announced.' The pressure on Mr Albanese has intensified as Canada and the United Kingdom have both successfully negotiated tariff exemptions. Notably, both countries have committed to lifting their defence spending to 5 per cent of GDP by 2035, as was demanded by the US. In contrast, Australia's defence budget has been forecast to reach only 2.33 per cent of GDP by 2033, which has frustrated the Trump administration. Despite months of uncertainty, Mr Albanese has still not secured a face-to-face meeting with President Trump, after their first scheduled meeting was abruptly cancelled. 'We'll have a meeting when it's scheduled,' Mr Albanese recently told Sky News when asked about the status of the relationship. 'There will be a range of meetings between now and the end of the year with President Trump.' The standoff has also been complicated by the Albanese government's personal attacks against President Trump, which experts warned have 'sabotaged' the relationship. Former Trump trade adviser Kelly Ann Shaw told Sky News the solution to negotiating tariffs was to reach a deal with President Trump. 'I would assume that the government of Australia would be interested in negotiating something similar to what the UK seems to have gotten,' she said. 'These sectoral investigations — steel, aluminium, autos, pharmaceutical, semiconductors — are being wrapped up in broader negotiations. 'It really does depend on those bilateral discussions between Canberra and Washington in terms of what's agreed to and where the real pressure points are.'
