From July 31, the United States will impose up to 100% tariffs on pharmaceuticals coming into the US. Some Australian-made exports look set to pay that highest rate, while some other countries – including the UK, Japan and the European Union – have negotiated lower rates.

The new US tariffs are not specific to Australian-made products. However, the US pharmaceutical industry has long called for tougher tariffs on Australia because of the Pharmaceutical Benefits Scheme (PBS), a subsidised scheme that supports cheaper medicines for Australians.

Following the announcement of the new tariffs, Health Minister Mark Butler said Australia’s position hasn’t changed, promising:

this will not impact drug prices for Australian consumers […] There will be no negotiation around the PBS under an Albanese government.

this will not impact drug prices for Australian consumers […] There will be no negotiation around the PBS under an Albanese government.

What could these new tariffs mean for affordable medicine in Australia? And is there anything Australia could offer to get a better deal?

How the tariffs will apply

US President Donald Trump first threatened to bring in pharmaceutical tariffs of up to 200% last year.

These sector-specific tariffs are separate from last year’s “Liberation Day” tariffs, which have been ruled unlawful by the US Supreme Court.

The pharmaceutical tariffs have been introduced........

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