US Pharma Industry Pressures Trump to Target Australia's PBS as Election Promises Lower Medicine Costs

The Albanese government pledges a $25 cap on PBS medicine costs by 2026, while US pharmaceutical giants lobby for tariffs over alleged trade barriers.

The US pharmaceutical industry has formally requested President Trump to impose tariffs on Australia, labeling the Pharmaceutical Benefits Scheme (PBS) as 'egregious and discriminatory.'
Prime Minister Anthony Albanese has pledged to lower the maximum cost of PBS medicines to $25 per script starting January 2026 if re-elected, with the Coalition matching this policy.
The PBS, a vital program ensuring affordable medicine access for Australians, has bipartisan support in Australia and will not be altered in response to US pressure, according to officials.
US pharmaceutical companies argue that Australia's PBS undervalues American innovation and restricts market access by favoring lower-cost generic drugs.
Australian officials have emphasized the PBS's role in healthcare affordability and rejected any trade negotiations that would compromise its structure or pricing policies.