Trump accuses foreign nations of ‘freeloading' on drug prices as Australia insists PBS prices won't rise
Trump wrote to 17 pharmaceutical companies, demanding they treat the US as the 'most favoured nation' and lower prices of drugs for the US Medicaid scheme, and threatened to use 'every tool in our arsenal' to crack down on pharmaceutical giants if they fail to cut drug prices for Americans within 60 days.
In Australia, under the pharmaceutical benefits scheme (PBS), pharmaceutical companies negotiate directly with the department of health on pricing.
The Australian government hasn't said whether tariffs or restrictions from the US on pharmaceuticals would impact the PBS.
Pharmaceuticals are already covered under Australia's existing free trade agreement with the US.
Medicines on the PBS are capped for the public, with the government subsidising the rest of the cost. The government recently announced another drop in the price of prescriptions within the scheme, to $25 per script from 1 January.
'The PBS is not up for negotiation,' a government spokesperson said. 'Our government is getting on with the job of delivering cheaper medicines for Australians.'
Labor has said repeatedly that prices wouldn't rise in Australia.
Health minister Mark Butler said on Tuesday the US administration had been changing its position 'a lot' on pharmaceuticals.
'It's still shifting around a bit. I think it's fair to say our officials are working hard to get a sense exactly of the nature and the timing of any tariffs on pharmaceutical exports,' he told ABC radio.
'Which … is a particular sector or industry that the US administration has been focused on.'
The US pharmaceutical lobby has complained to the Trump administration that the PBS undervalues drugs, and have criticised the long lead time for drug approvals in Australia.
Trump has also threatened countries globally to increase baseline tariffs to 15 or 20%.
The administration's latest tariff deadline was recently delayed to 1 August. Trump has said countries that didn't negotiate a trade deal directly with the US before that deadline – which was set to come into effect on Friday afternoon, Australian time – could face new levies.
On Friday morning in Australia, Trump issued an executive order confirming new tariff deals for several trading partners, as well as revised tariffs for a number of other countries.
Australian goods imported into the US will continue to attract the baseline 10% tariff, under the new tariff regime which will take effect in seven days.
In the executive order, Trump indicated he was open to further negotiations on tariffs for countries he saw as in accordance with his America First agenda.
The opposition has heavily criticised the prime minister for not having sat down with Trump for a meeting since he was elected president.
The two were supposed to meet on the sidelines of the G7 Summit in Canada in June, but the president left early after an escalation in tensions in the Middle East.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
2 minutes ago
- The Independent
Trump attempting new Israel deal as Netanyahu considers full Gaza takeover
Donald Trump and Benjamin Netanyahu are reportedly pursuing an 'all or nothing' agreement to end the conflict in Gaza, demanding hostage release and Hamas disarmament. Netanyahu is said to be considering a full military takeover of Gaza, despite warnings from former Israeli security officials about the risks to hostages and the humanitarian situation. Growing domestic and international pressure is mounting for a ceasefire deal, intensified by reports of widespread starvation in Gaza and videos of emaciated Israeli hostages. Israel's far-right finance minister, Bezalel Smotrich, has indicated plans to rebuild Jewish settlements in Gaza, viewing the conflict as an opportunity for expansion. A UN-backed food security agency has warned of a 'worst-case scenario of famine' in Gaza, with a UN special rapporteur accusing Israel of creating an 'efficient starvation machine'.
The Independent
2 minutes ago
- The Independent
Democrats have early edge over Republicans in 2026 midterm election poll
A new poll shows finds that Democrats have an early edge heading into the 2026 midterm elections in the minority party's bid to wrest control of the House of Representatives back from Republicans. A YouGov/The Economist survey took place between August 1-4 and polled 1702 US adult citizens. The generic ballot is a barometer that shows just whether voters would prefer voting for a Democrat or Republican. As of this week, 43.7 percent of voters intend to vote for Democrats in the midterms and 38.4 percent prefer to vote for Republicans. The differences are even more pronounced when it comes to independent voters, as 38.2 percent said they intend to vote for Democrats while only 26 percent of them plan to vote for Republicans. Historically, the president's party loses at least one chamber in Congress during a midterm election, and flips some governorships or state legislatures. With the president off the ballot, voters register their satisfaction and dissatisfaction with the president's job performance at the midterms. The Economist/YouGov poll showed a majority of 55 percent of voters disapprove of President Donald Trump's job performance while 41 percent approve of it, with 12 percent of people who voted for Trump in 2024 disapproving of his job performance. Around the same time in 2017, 39.6 percent of voters planned to vote for the Democrats and 33.3 percent planned to vote for the Republicans. In 2018, Democrats would win back the the House of Representatives as they made a net gain of 40 seats. Democrats also have a significant advantage with young people. After young people, driven largely by young men, swung significantly to the right in 2024, 50.8 percent of voters younger than 30 said they intend to vote for Democrats, compared to only 21.8 percent who said they intend to vote for Republicans. Voters between 18 and 29 range disapprove of Trump's performance on the economy, with only 29 percent approving and 60 percent disapproving. They also do not approve of how he's handling inflation and prices, with 68 percent disapproving. Republicans also seem to be losing their grip on Hispanics voters, as 42.8 percent of Hispanic voters said that they intend to vote for Democrats. That's slightly lower than the 47.3 percent of Hispanic voters who said the same thing during the first week of August in 2017, which preceded huge Hispanic turnout in the 2018 midterm election, but still significant. Hispanic voters largely disapprove of Trump's performance on the economy, with 55 percent disapproving and only 38 percent approving. They are also not fans of his immigration policies, with 60 percent of Hispanic voters disapproving and only 35 percent approving. Trump has ramped up his attacks on Hispanics, particularly after he sent the US National Guard into Los Angeles without the consent of the state's Democratic Gov Gavin Newsom to quell protests against against Immigration and Customs Enforcement. Across the board, voters oppose his handling of health care, with 57 percent of voters disapproving of it. This comes a momth after Trump signed his signature 'One, Big, Beautiful Bill,' that included steep cuts to Medicare and Medicaid. Democrats hope to retake the House of Representatives next year. But Republicans hope to shore up their majorities. In Texas, Republicans elected to call a special session to redraw congressional lines in the middle of the decade, which prompted Democrats to decamp to blue states.
Telegraph
3 minutes ago
- Telegraph
Watch: Donald Trump ‘takes a little walk' on White House roof
As questions go, this was perhaps not the most taxing query that a twice impeached, once convicted and serially controversial president had ever faced. 'What are you doing up there?' was the enquiry reporters shouted as they craned their necks to get a better view of Donald Trump as he strolled across the roof of the White House. Earlier on Tuesday, Mr Trump had sat for a television interview about the nation's finances and then phoned Volodymyr Zelensky while his top negotiator was en route to Moscow for last chance ceasefire talks. But by mid-morning, the American president was taking time out from international crises to turn his attention to matters closer to home and closest to his heart: construction. At 10.45 am, the most powerful man in the world stepped through a window from the State Dining Room on to the press briefing room roof. 'Taking a little walk,' he said as confused journalists shouted various different versions of: 'What on earth...?' Snipers kept watch from the top of the West Wing. Beside him stood James McCrery, the architect tasked with building a new White House ballroom, explaining the reason for the unusual site visit. The US president pointed back towards the location of the planned extension and suggested that they were checking out the site. 'Just another way to spend my money for this country,' Mr Trump shouted down. 'Anything I do is financed by me.' Crews are due to break ground on the project next month, at a cost of more than $200m (£150m). Mr Trump says taxpayers will not foot the bill. He and donors will pick up the tab as he makes good on a plan he hatched during his first term of leaving his fingerprints on the 'people's house.' Crews recently completed a project to pave over the Rose Garden lawn, making it better equipped to handle press conferences or other official events. It is a reminder that Mr Trump often operates as the builder-in-chief. His background as a real estate developer means he sometimes interrupts official visits to ask about building materials or the flooring or construction techniques. His entry into politics in 2015 famously included a bricks-and-mortar pledge. 'I would build a great wall, and nobody builds walls better than me, believe me,' he said as he unveiled plans to seal the southern border.
