19 hours Ago By Kat Wong
Australian pharmaceutical companies will not be directly hit by Donald Trump's sweeping tariffs. Login or signup to continue reading The president on Thursday morning Australian time unveiled 10 per cent tariffs on all Australian goods sent to the United States as part his "Liberation Day" announcements. But the nation's pharmaceutical industry representative Medicines Australia has received confirmation there will be no tariffs on Australian pharmaceuticals exported to the US.
Mr Trump's executive order hinted pharmaceuticals, alongside copper, semiconductors, lumber and critical minerals could be exempt from the levies, though the Australian sector did not receive official confirmation until Thursday afternoon. The carve-out will come as a relief after speculation that a pharmaceutical tariff could undermine Australia's medicine subsidy scheme. Prime Minister Anthony Albanese earlier maintained the broader tariffs were "totally unwarranted".
"The administration's tariffs have no basis in logic and they go against the basis of our two nations' partnership," he told reporters in Melbourne. "This is not the act of a friend." Tariff levels varied depending on the country and while most were around 25 per cent, Australia has been hit less hard with its rates resting on the baseline.
Mr Trump slapped the same tariffs on the Heard and McDonald Islands, a barren and uninhabited Australian external territory in the Indian Ocean, and on Christmas Island, the former home to Australia's offshore immigration detention centres. But Norfolk Island, another Australian territory in the Pacific Ocean, has been slugged with a 29 per cent tariff even though it largely exports about $400,000 in leather shoes, $250,000 in seeds, and $175,000 in vehicle parts. During his White House speech, Mr Trump singled out Australian beef partly because the government has banned imports on various American produce including raw pork, pears and apples to prevent contamination and diseases.
Uncooked American beef, in particular, has been barred since a mad cow disease outbreak in 2003. "Australians ..
. they're wonderful people, wonderful everything, but they ban American beef," Mr Trump said at the White House. "Yet we imported $US3 billion ($A4.
8 billion) of Australian beef from them just last year alone. "They won't take any of our beef, they don't want it because they don't want it to affect their farmers." Australian beef has not been banned from the US, offering some relief to the domestic industry, but the Red Meat Advisory Council is unhappy with the decision announced on Thursday morning, Australian time.
"It remains a disappointing decision from the US," council chair John McKillop confirmed. US consumers could be among the worst hit by the tariffs as Australian beef is in an estimated six billion hamburgers eaten every year in America. While Australia has ruled out reciprocal tariffs, Mr Albanese gave assurances it would not just bend to the US.
Neither will the government Americanise its health system, undermine its media bargaining code or weaken its biosecurity measures. Instead, Australia will strengthen its anti-dumping regime to protect domestic steel, aluminium and manufacturing to combat unfair competition. Labor will also provide $50 million to affected sectors, particularly bodies such as the National Farmers Federation.
The government has already earmarked $20 million for its "buy Australian" campaign and will prioritise local businesses for procurement and contracts. Australia's trade relationships will be diversified, with the government recently signing a new trade agreement with the United Arab Emirates and continuing to pursue an agreement with the European Union. The nation's biggest exports to the US are financial services, gold, sheep and goat meat, transportation services and vaccines, as well as beef.
The US was Australia's largest red meat export market in 2024 and was worth more than $6 billion - or about one-third of the nation's total global exports - according to the advisory council. Australian Associated Press Daily Today's top stories curated by our news team. Also includes evening update.
Weekdays Grab a quick bite of today's latest news from around the region and the nation. Weekdays Catch up on the news of the day and unwind with great reading for your evening. Weekly Get the editor's insights: what's happening & why it matters.
Weekly Going out or staying in? Find out what's on. Weekly Love footy? We've got all the action covered. Weekly The latest news, results & expert analysis.
Weekly Follow the Newcastle Knights in the NRL? Don't miss your weekly Knights update. Weekly Get the latest property and development news here. Weekly Every Saturday and Tuesday, explore destinations deals, tips & travel writing to transport you around the globe.
Weekdays Sharp. Close to the ground. Digging deep.
Your weekday morning newsletter on national affairs, politics and more. Twice weekly Your essential national news digest: all the big issues on Wednesday and great reading every Saturday. Twice weekly Get real, Australia! Let the ACM network's editors and journalists bring you news and views from all over.
Weekly Get news, reviews and expert insights every Thursday from CarExpert, ACM's exclusive motoring partner. As it happens Be the first to know when news breaks. Daily Your digital replica of Today's Paper.
Ready to read from 5am! Daily Test your skills with interactive crosswords, sudoku & trivia. Fresh daily!.
