Overview

• President Donald Trump told his cabinet that 50% tariffs on copper could start in late July with a one-year grace period for pharmaceutical manufacturers before up to 200% duties apply.
• Treasurer Jim Chalmers described the tariff threats as “very concerning” and said Australia is urgently seeking specifics on the scope and timing of the proposed measures.
• Chalmers emphasized that the Pharmaceutical Benefits Scheme will not be used as a bargaining chip to avoid U.S. duties on drugs.
• Although the U.S. accounts for less than 1% of Australia’s copper exports, Australia shipped A$2.1 billion in medicines and pharmaceuticals to the U.S. in 2024, exposing its drug sector to steep levies.
• U.S. pharmaceutical lobby groups have long pressed the administration to retaliate against the PBS, arguing that its negotiated pricing undermines American exports.