Trump imposes 100% tariff on non-US pharmaceuticals, impacting Australia’s exports

✓ Verified by 2+ sources

Key details reported by multiple sources:

• Donald Trump imposed a 100% tariff on patented pharmaceuticals manufactured outside the US, effective July 31, 2026.
• Australia exported $US1.32 billion worth of pharmaceuticals to the US in 2025, per UN COMTRADE data.
• CSL, Australia’s largest biotech firm, makes the bulk of Australia’s pharmaceutical exports to the US and has expanded its US manufacturing capacity (e.g., $US1.5 billion Illinois plant expansion).
• The tariff applies to patented drugs, not generic medicines.
• The tariff is enacted under Section 232 of the Trade Expansion Act (national security powers), avoiding the Supreme Court’s February 2026 ruling that invalidated Trump’s ‘Liberation Day’ tariffs.
• Australia’s Health Minister Mark Butler stated the Pharmaceutical Benefits Scheme (PBS) prices will not rise due to the tariff, and Australia will not negotiate its PBS fundamentals.
• The tariff is reduced to 20% for companies that move production to the US, and to 0% if the country grants the US ‘most favoured nation’ status on drug pricing.
• CSL’s plasma-derived therapies (e.g., treatments for rare autoimmune diseases) may be exempt if they meet an urgent US health need or come from a country with a US trade deal.
• The EU, Japan, South Korea, Switzerland, and Liechtenstein negotiated 15% tariffs, while the UK secured a 10% tariff (with potential to reach 0%).
• Opposition Leader Angus Taylor stated the Coalition would work with the government to overturn the tariff or secure exemptions for Australian exporters.
• Large pharmaceutical companies have 120 days to announce re-shoring plans to reduce tariffs to 20%, while smaller companies have 180 days.