Australia Braces for Devastating Blow as Trump’s Sledgehammer Tariffs Threaten to Wipe Out $2.6 Billion Pharma Export Industry
- US President Donald Trump’s 100% tariff on branded pharmaceuticals set to cripple Australian exports from October 1
- Experts warn of dire consequences for Australian biotech companies, including CSL, and a potential decline in investment and research
- Australia’s health and life sciences industry, worth $5.6 billion annually, faces an uncertain future as Trump’s tariffs take hold
The Australian pharmaceutical industry is reeling in shock after US President Donald Trump announced a devastating 100% tariff on branded pharmaceuticals, set to come into effect on October 1. The move is expected to have a catastrophic impact on Australian exports, with experts warning of dire consequences for local biotech companies, including CSL.
Jenny Gordon, a fellow at the Lowy Institute, expressed her concerns about the long-term effects of the tariffs, stating, “A bigger risk is more long-term in that it’s the decline in investment in biotech and the mRNA vaccines, the downplaying of vaccines, which will reduce demand.” She added, “Those are some of the things that will have a longer-term impact on some of the products that Australian firms sell.”
Professor Stephen Duckett, from the University of Melbourne, was scathing in his assessment of Trump’s decision, saying, “President Trump ripping up the Australia-US free trade agreement” would have far-reaching consequences for companies like CSL, which relies on importing plasma from the US for processing in Australia.
CSL, one of Australia’s largest companies, initially saw its market value plummet on news of the tariff hike, before rallying to finish down $3.76, or 1.90%, at $194.23 on Friday. The company has expressed confidence in securing a tariff exemption, citing Trump’s comments about companies building manufacturing facilities in the US.
Australia’s Health Minister, Mark Butler, said the government was still working to understand the implications of the tariffs for local exporters, stating, “We’ve been making the case, since it first became clear that the US was going to take some action in this area, about the benefits of continued free trade in pharmaceuticals between our countries.”
The Australian pharmaceutical industry is worth $2.6 billion annually and employs around 260,000 people. The US tariffs threaten to undermine this vital sector, with experts warning of a decline in investment and research, and a potential decline in the supply of the latest technology.