Media Statement: United States Tariffs on Australian Pharmaceuticals

The Coalition strongly opposes the United States’ decision to impose a sweeping 100 per cent tariff on Australian pharmaceuticals.

This announcement is deeply alarming because it poses a serious threat to our $2 billion pharmaceutical export industry, local medical innovation and, most concerningly, the cost and availability of medicines right here in Australia.

The Albanese Labor Government has been warned repeatedly but chose to put its head in the sand.

Medicine companies have been raising concerns about this issue with Labor for months but it remains unclear what action, if any, the Government has taken to secure an exemption or advocate for the interests of Australians.

On 18 April 2025, the Coalition wrote to the Prime Minister calling for a comprehensive submission to the United States’ Section 232 investigation into pharmaceutical imports. That was nearly a year ago. Australians deserve to know whether any action followed.

The Government must now act urgently to secure an exemption for Australian exporters. That must be the first priority.

For more than 20 years, Australian pharmaceutical exporters have operated tariff-free under the Australia–United States Free Trade Agreement secured by a former Coalition Government – an agreement negotiated without impacting the Pharmaceutical Benefits Scheme.

Let’s be clear: Australia’s Pharmaceutical Benefits Scheme must always be protected and is not up for negotiation, full stop.

At the same time, Mark Butler went on national television this morning and said medicine prices won't go up. But Australia imports about 90 per cent of medicines so any shift in global pharma trade creates real risks on price, on availability, or both.

Minister Butler needs to explain how the Albanese Government plans to protect Australians from any increase in the cost of medicines, particularly in the middle of a cost-of-living crisis.

This is the same government that told Australians there was nothing to worry about with fuel security. Australians are still living with the consequences of that complacency that we cannot afford.

The Coalition stands ready to work with the Government to secure an exemption and protect medicines for Australians, but there can be no more delays in acting.

ENDS