Donald Trump has ordered a 100 per cent tariff on pharmaceuticals manufactured outside the United States, a move that could have a big impact on Australia.
Australia exported $US1.32bn of pharmaceuticals to the US in 2025, United Nations COMTRADE data shows.
The US Supreme Court ruled in February the President’s sweeping ‘liberation day’ tariffs were illegal, however the pharmaceuticals levy has been enacted under different legislation.
The tariff applies to patented products, not generic medicines.
Melbourne-based CSL makes the bulk of Australia’s exports, but the company has been investing more and more in US manufacturing amid the President’s long-running threats to tax the products.
The levy has been invoked under national security powers.
“The actions in this proclamation are necessary and appropriate to address the threatened impairment of the national security posed by imports of pharmaceuticals and pharmaceutical ingredients,” Mr Trump said in the executive order.
The executive order also says companies which move factories to the US may be able to reduce the tariff to 20 per cent.
A White House official told media pharmaceutical companies could make deals with the White House to lower prices in the US and avoid any levy.
More to come
