Experts warn Trump order demanding cheaper medicines for US could push up Australian prices
The US president on Monday threatened to force medicine companies to lower their prices in the US, giving them 30 days to cut costs or face more severe action in an executive order.
Faced with lower American profits, companies would be likely to demand higher prices elsewhere in the world and reject the lower prices offered by the Australian government, according to Flinders University health economist Prof Jonathan Karnon.
'It's a pretty high probability,' Karnon said.
'Either the Australian government will have to pay more, or the Australian consumers won't have access to as many new pharmaceuticals as they used to have.'
Sign up for Guardian Australia's breaking news email
Trump's threats to force down prices and profits should be taken seriously given domestic political pressures in a country where millions of people cannot afford life-saving drugs, said Jared Mondschein, research director at the United States Studies Centre.
'Companies may decide that it's simply not worth their while to be listed in Australia if the price is not high enough, because the United States will say, 'Look, it's not fair for you to be giving them that price, but not us,'' Mondschein said.
Monday's executive order did not single out Australia, instead pointing to prices in other countries generally and demanding companies offer comparably low prices to Americans.
A report by research organisation Rand found that US drug prices were nearly four times higher on average than those in Australia and nearly three times higher than those in the OECD overall.
Mondschein suggested Trump may see the action as politically necessary given his declining approval rating and longstanding calls for cheaper healthcare for Americans.
The Albanese government, which campaigned on protecting cheaper PBS medicines, indicated it would not pass on higher prices to Australia consumers.
'Our task is crystal clear: to strengthen Medicare, protect the PBS, deliver generational reform to aged care, and secure the future of the NDIS,' the health minister, Mark Butler, said on Monday.
Asked how the government was responding to the new US policy, a spokesperson reaffirmed that affordable medicines and the PBS were 'not up for negotiation'.
Labor was on Tuesday assessing how the policy could impact Australian households and industry, as was pharmaceutical industry body Medicines Australia.
Sign up to Breaking News Australia
Get the most important news as it breaks
after newsletter promotion
'There is a lot that remains unclear,' Medicines Australia said in a statement.
American pressure on Australian pharmaceutical prices arose earlier in 2025 – while the Trump administration was considering its first round of tariffs – when American industry took aim at the PBS not allowing them to charge Australians more and for delays getting their products to market.
The Pharmaceutical Research and Manufacturers of America (PhRMA) hit back at Trump's Monday announcement, but continued to demand action against foreign companies.
'Importing foreign prices from socialist countries would be a bad deal for American patients and workers,' the PhRMA president, Stephen J Ubl, said in a statement.
'To lower costs for Americans, we need to address the real reasons U.S. prices are higher: foreign countries not paying their fair share.'
Australia's pharmaceutical sector, which Westpac estimated sent more than half its exports to the US in 2024, had so far been exempt from US tariffs but the Trump administration in April was investigating further measures.
Australian investors sold pharmaceutical shares on Monday, fearing a more severe executive order, but bought back in on Tuesday after the formal announcement, lifting local drugmakers CSL, Neuret and Telix.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
an hour ago
- The Independent
Trump rows back threat of ‘secondary tariffs' against India and China after Putin summit
US president Donald Trump has played down the prospect of imposing so-called 'secondary tariffs' on buyers of Russian oil after his meeting with Vladimir Putin in Alaska. Trump had proposed the levies as a new way of pressuring Russia's war-time economy if it failed to stop its invasion of Ukraine, and they were largely due to impact China and India, by far the two biggest buyers of Russian crude. Mr Trump earlier this month doubled duties on Indian products to 50 per cent after imposing an additional 25 per cent tariff for buying Russian oil, kicking off from 27 August. New Delhi was facing the risk of even higher tariffs if Mr Trump's summit in Alaska failed to end Russia's war in Ukraine after the US treasury secretary Scott Bessent said Wednesday that 'secondary tariffs could go up' if things don't go well at the meeting. In recent days, Mr Trump has expressed his anger with India for its refusal to stop buying oil from Russia. He has accused India of financing Russia's war in Ukraine by purchasing discounted crude from Moscow. China remains the largest market for Russian oil exports. However, raising tariffs on Beijing threatens to break a delicate truce deal between China and the US after it was extended for another 90 days. The truce saw both countries lowering tariffs on each other's goods after the trade war between the two biggest economies threatened to upend global markets. On board Air Force One on his way to meet Mr Putin in Alaska, Mr Trump still appeared undecided on whether he would impose secondary tariffs or not, saying they would be 'very devastating' for China in particular and suggesting Russia had already 'lost an oil client' in India. ''If I have to do it, I'll do it. Maybe I won't have to do it,' he said. After the nearly three-hour-long meeting with Mr Putin, Mr Trump hailed the Alaska summit as a 'great and very successful day' although 'we didn't get there' on agreeing an immediate ceasefire. He instead endorsed Russia's longstanding position – that Kyiv and Moscow would need to agree a full peace deal while fighting continued in the background. And in a post-summit interview with Hannity, Mr Trump said he would hold off on imposing secondary tariffs on China for buying Russian oil after making progress with Mr Putin. He did not mention India directly. "Because of what happened today, I think I don't have to think about that now," Mr Trump said of the tariffs. "I may have to think about it in two weeks or three weeks or something, but we don't have to think about that right now." India has previously said that it needs Russian oil to meet the energy needs of its fast-growing economy. The country has been sourcing nearly a third of its oil from Russia since the Ukraine war began in early 2022 and Moscow started offering it at a discounted rate. New Delhi has decried the double standards of the US sanctioning its oil purchases while continuing to buy Russian uranium hexafluoride, palladium and fertiliser. Narendra Modi's government called the US tariffs "unfair, unjustified and unreasonable" and vowed to "take all actions necessary to protect its national interests'.
Daily Mail
an hour ago
- Daily Mail
Wylie thought he was fit and healthy. Now he's fighting for his life at just 39 after doctors dismissed his 'vague' symptom
Wylie Dixon was excited to build a future with his beautiful wife - from travelling across Australia to starting the family they had always dreamed of. But everything came to a halt when the 'fit and healthy' retail manager received devastating news that he had an aggressive form of appendix cancer. The then 38-year-old had been struggling with months of fatigue, but doctors dismissed the 'vague' symptom so he assumed there was nothing to worry about. It wasn't until he began experiencing excruciating stomach pains and vomiting that he was rushed to the emergency room - where he learned he had stage four cancer. 'I was heartbroken,' Wylie, now 39, told FEMAIL. 'I was in disbelief as I'd never heard of the cancer before... I wasn't someone who had scheduled health check-ups but I went to the doctor often when something would arise. 'I was fit and healthy, not overweight, I was very active and walking 10,000 to 20,000 steps per day was normal for me at work.' By the time he was diagnosed in August 2024, Wylie was told he may have just three months to live - completely turning his world upside down. He explained that he just can't fathom how his condition turned into such an extremely rare case, especially since there were no alarming symptoms before his appendix cancer diagnosis. 'I didn't have any major symptoms besides fatigue. That's the problem with this cancer, everything was vague and didn't persist, besides the fatigue,' he said. For Wylie, the most disheartening part of his diagnosis was feeling a 'massive sense of being let down' by doctors. 'Unfortunately the many GP visits over two years failed to diagnose me,' he said. 'Ultimately I ended up in emergency one night with acute abdominal pain and vomiting caused by a blockage right where the appendix is located. 'I trusted what I was being told but as I now know from my own research many GP visits were caused by the cancer.' Wylie has lived in Cairns, Far North Queensland, for most of his life but after the diagnosis, he and his wife Ked relocated to Sydney to be closer to the only specialist cancer centre offering the urgent care he needs. As he was spending more time in Sydney, it only made sense for the couple to move. The couple made the heartbreaking decision to sell their home, quit their jobs and leave behind their family and friends so they could give Wylie a fighting chance. He underwent a 19-hour peritonectomy surgery, a highly invasive surgical procedure to remove the cancerous tumours from his body. Since then, he has been enduring intense rounds of chemotherapy. 'It's been a very long recovery from the operation, I'm still going eight months on. It's very much a watch and wait game at the moment,' he explained. Despite getting the all-clear, his cancer has returned, and he's now looking into travelling to Japan or Germany for new treatment options. 'The likelihood of recurrence is very high,' he explained. With both Wylie and his wife unable to work, the rising cost of flights, temporary accommodation, medications, ongoing treatment, and countless specialist appointments have become overwhelming. 'The stress of mounting bills threatens to overshadow the one thing that matters most: Wylie's recovery,' his cousin Ashleigh said on his GoFundMe page. 'We are asking for your help. Your donation, no matter the size, will help lift some of this burden - giving Wylie the chance to focus on healing without the added weight of financial stress. It will help ensure he can continue receiving the lifesaving care. 'Please consider supporting Wylie during this incredibly difficult chapter. Every dollar and every message of encouragement means more than you can imagine.' Signs and symptoms of appendix cancer Appendix cancer may not cause symptoms in its early stages. However, some people may experience symptoms such as: appendicitis (lower right abdominal pain) gradual increase in waist size build-up of fluid in the abdomen bloating changes in bowel habits hernia ovarian mass or lump Source: Cancer Council According to Cancer Council, appendix cancer occurs when cells in the appendix become abnormal and continue to grow, forming a tumour. The causes are unknown, and there are no clear risk factors - it also does not appear to run in families. Increasing age, however, may raise the risk of developing appendix cancer. It's a rare condition, with the most common types occurring in Australians aged between 40 and 60. In 2024, an estimated 874 people were diagnosed with appendiceal cancer. There is currently no screening available for appendix cancer in Australia. It is often discovered during abdominal surgery for a different condition or after surgical removal of the appendix due to a suspected case of appendicitis. 'I just hope there's more awareness of appendix cancer because there is no real screening process for it,' Wylie said. By sharing his story, he hopes to encourage young people to push for more answers if their symptoms are overlooked simply because they're considered 'too young to have cancer'. 'GPs shouldn't dismiss symptoms just because someone is young,' Wylie said. 'We're now seeing cancer rates in younger people go through the roof.'
Reuters
an hour ago
- Reuters
Three Republican-led states to deploy National Guard troops to US capital
Aug 16 (Reuters) - The Republican governors of three states are deploying hundreds of National Guard troops to Washington, D.C., at the request of the administration of President Donald Trump, who has portrayed the city as awash in crime. The announcements on Saturday of troops from hundreds of miles away in West Virginia, South Carolina and Ohio came a day after D.C. officials and the Trump administration negotiated a deal to keep Mayor Muriel Bowser's appointed police chief, Pamela Smith, in charge of the police department after D.C. Attorney General Brian Schwalb filed a lawsuit to block the federal takeover of the department. Trump, a Republican, said this week he was deploying hundreds of D.C. National Guard troops to Washington and temporarily taking over the Democratic-led city's police department to curb what he depicted as a crime and homelessness emergency. Justice Department data, however, showed violent crime in 2024 hit a 30-year low in Washington, a self-governing federal district under the jurisdiction of Congress. West Virginia Governor Patrick Morrisey's office said in a statement he was deploying 300 to 400 National Guard troops to D.C. in "a show of commitment to public safety and regional cooperation." The statement said he also was providing equipment and specialized training. South Carolina Governor Henry McMaster responded to a Pentagon request by announcing that 200 of his state's National Guard troops would be sent. Ohio Governor Mike DeWine said he would send 150 military police members in the coming days, adding none of them were "currently serving as law enforcement officers in the state." After the announcements, Mayor Bowser posted on X: "American soldiers and airmen policing American citizens on American soil is #UnAmerican." The National Guard serves as a militia that answers to the governors of the 50 states except when called into federal service. The D.C. National Guard reports directly to the president. Trump, who has suggested he could take similar actions in other Democratic-controlled cities, has sought to expand the powers of the presidency in his second term, inserting himself into the affairs of major banks, law firms and elite universities. In June, Trump ordered 700 Marines and 4,000 National Guard troops to Los Angeles, against the wishes of California's Democratic governor, during protests over mass immigration raids by federal officials. South Carolina's McMaster said his troops would immediately return to South Carolina if needed to respond to a possible hurricane or other natural disaster. Hurricane Erin, now northeast of Puerto Rico, has become a catastrophic Category 5 storm that could bring ocean swells to the U.S. East Coast early next week, the U.S. National Hurricane Center said on Saturday. National Guard troops often respond to natural disasters and rarely police U.S. civilians. Drew Galang, a spokesperson for West Virginia's Morrisey, said the state's National Guard received the order to send equipment and personnel to D.C. late on Friday and was working to organize the deployment. A White House official said on Saturday that more National Guard troops would be called in to Washington to "protect federal assets, create a safe environment for law enforcement officials to carry out their duties when required, and provide a visible presence to deter crime." A U.S. official, speaking on the condition of anonymity, said a formal order was expected to go out that would authorize National Guard troops in D.C. to carry firearms. The official said this order would affect mostly military police officers with sidearms. Reuters has reported that the National Guard troops would have weapons nearby, such as in their vehicles. The White House said on Saturday that D.C. National Guard members have conducted patrols on foot and in vehicles around the National Mall and Union Station. The White House said the National Guard troops are not making arrests now and that they may be armed. It is not clear how the administration could deploy National Guard troops elsewhere. A federal judge in San Francisco is expected in the coming weeks to issue a ruling on whether Trump violated the law with the Los Angeles deployments.
