Albanese government at risk of losing major industry as US President Donald Trump threatens 200 per cent tariffs on pharmaceuticals
US President Donald Trump's has threatened up to 200 per cent on pharmaceutical products exported to the United States.
He declared his intention on Wednesday (Australian time) to impose punitive tariffs unless foreign drug manufacturers move operations to the United States.
'If they have to bring the pharmaceuticals into the country ... they're going to be tariffed at a very, very high rate, like 200 per cent,' President Trump told reporters.
'We're going to give people about a year, a year and a half to come in and, after that, they're going to be tariffed.'
The Albanese government faces the real risk of losing one of its most valuable export industries to the United States unless Mr Albanese can negotiate a trade deal.
Two allies — United Kingdom and Canada — have already secured exemptions amid broader negotiations and significantly lifting defence spending.
However, Mr Albanese has been unable to even meet President Trump face to face, much less negotiate a trade deal.
The pharmaceutical tariff threat will likely throw drug manufacturers into a state of panic, with no certainty about market access or invest confidence.
The proposed tariffs would strike a devastating blow to Australia's already-fragile manufacturing base, amid soaring energy costs and bureaucratic red tape.
Former trade adviser to President Trump Kelly Ann Shaw told Sky News that the Albanese government needed to meet with President Trump to negotiate the tariffs.
'I would assume that the government of Australia would be interested in negotiating something similar to what the UK seems to have gotten,' she said.
'We've seen these sectoral investigations … being wrapped up in broader negotiations,' Ms Anne Shaw said.
'My assumption is this is something that both (Australian and US) governments are talking about right now.'
Treasurer Jim Chalmers on Wednesday said the developments were 'very concerning' and confirmed that the government has urgently sought clarification from Washington.
'Much more concerning are the developments around pharmaceuticals,' Mr Chalmers told ABC Radio National.
'Our pharmaceuticals industry is much more exposed to the U.S. market, and that's why we're urgently seeking some more detail on what's been announced.'
In 2024, pharmaceutical exports to the US were valued at about $2 billion, among the top five exports, alongside meat, medical equipment, transport equipment and gold.
Mr Albanese said on Tuesday that the government had not given up on tariff exemptions, after previously admitting he did not expect to receive special treatment.
Nationals leader David Littleproud told Sky News that Mr Albanese 'doesn't seem to understand the importance' of the tariffs threat.
'The Prime Minister is letting Australians down, he's letting Australian jobs down,' Mr Littleproud said.
'He's not acting as someone that understands the importance or urgency of this. President Trump made it very clear around tariffs some time ago.
'The Prime Minister, since 3 May, hasn't even sought to go to the United States, to go to the White House, as many other world leaders have, to plead our case.'
Prime Minister Anthony Albanese has conceded he does not have a meeting scheduled with US President Donald Trump, after their first meeting was abruptly cancelled.
The admission comes after Sky News revealed that President Trump does not like US Ambassador Kevin Rudd and that he was 'one of the biggest issues' in the relationship.
Mr Albanese told Sky News that he would 'have a meeting when it's scheduled', and suggested there would be plenty of opportunities in coming months.
Speaking at Sky News' Australia's Economic Outlook forum on Friday, he insisted that a meeting with President Trump would take place before the end of the year.
'Well of course we will have meetings, there will be a range of meetings between now and the end of the year with President Trump,' he said.
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