Donald Trump threatens copper, pharmaceutical tariffs
GROUNDHOG DAY ON TRUMP AND TARIFFS
Today marks my one-year anniversary of writing the Worm for all you lovely people, and it’s been quite the year of news, I think we’ll all agree. Hopefully I’ve been able to do my little bit in laying out the major stories of the day and how different publications are covering them each morning.
One topic has clearly dominated the past year: a certain Donald J. Trump. And I am very afraid to say, this morning is no different. So let’s grab that coffee and get stuck in. Once more unto the breach, dear friends, once more…
The Australian leads its coverage today on how Trump’s claim that he’s going to increase tariffs on medicines and copper “has sparked alarm” among Australian business leaders and the government.
Trump claimed this week that copper entering the US from other countries is set to face a new tax of 50% and threatened a 200% duty on pharmaceuticals, after a year or so… Maybe — if he doesn’t TACO again. As we’ve written plenty of times this year, you’re much better off focusing on what the White House resident actually does rather than says.
Nevertheless, yesterday Treasurer Jim Chalmers called the latest round of proposed tariffs “very concerning”, and Reserve Bank deputy governor Andrew Hauser warned they could have a “profound” impact on the global economy, Guardian Australia reports.
“How worried are we about it [Trump’s trade policies]? We are very, very focused on it, the level of uncertainty is clearly elevated,” Hauser said at the Australian Conference of Economists on Wednesday. “The first round effects of these changes in US tariffs are probably relatively minor, but the effects on a broader global economy are profound.”
Hauser, who previously worked at the Bank of England, also likened the impact of the Trump tariffs to Brexit. “The day after Brexit happened, everyone thought the world would end, and it didn’t,” he said. “But 10 years on, you’re seeing the profound effects of some of those changes for sustainable growth rates and for fundamental things in the economy.”
The site highlights Minerals Council boss Tania Constable also warned the threat of tariffs on copper would disrupt trade and undermine investor confidence.
Chalmers expressed his concern at the idea of significant tariffs on pharmaceuticals to the ABC: “Our pharmaceuticals industry is much more exposed to the US market, and that’s why we’re seeking, urgently seeking, some more detail on what’s been announced,” he said. “But I want to make it really clear once again … our pharmaceutical benefits scheme is not something that [we are] willing to trade away.”
Guardian Australia flags Australia exports around $2.5 billion in pharmaceuticals, vaccines and healthcare products to the US each year.
In its report, The Australian chooses to quote CSL chairman Brian McNamee as claiming: “I don’t think America’s demand is an unreasonable demand. I don’t think the US is trying to tear the PBS down. Americans have allowed their companies to maximise drug innovation and sell to other countries. Other countries benefit from that and are using the free-rider system. I think this is the same as defence. I think Australia could accelerate the system for approvals and the mechanism for pricing of innovative new drugs, but it does come at a cost. You need to make a contribution.”
Meanwhile, Medicines Australia chief executive Elizabeth de Somer said in very plain terms that the industry opposed tariffs being applied to pharmaceutical manufacturing.
The New York Times reports that on Wednesday, local time, Trump notified seven more countries, including Iraq and the Philippines, that they face higher tariffs starting on August 1 unless they strike deals.
Unsurprisingly, the Coalition has used the tariff announcement to wheel out its usual attack line that the Trump threats were “yet another warning signal for the prime minister to step up his engagement with the president”. As all the usual publications continue to scream at the clouds about the lack of a Trump meeting, Albanese also can’t stop getting unsolicited advice for his six-day trip to China, starting this weekend.
The Australian Financial Review once more quotes individuals telling the prime minister what a tightrope he has to walk when he meets with Xi Jinping amid strained US-China relations. The piece does quote an anonymous government source in trying to point out amid the breathless coverage that Australia is “not an interlocutor” between the two.
The AAP has a slightly calmer look at things, reporting Australian business groups are “cautiously optimistic” that Albanese’s visit to China will help improve the relationship with Beijing.
UK LOVE FOR AUKUS
In semi-heartening news for Anthony Albanese, amid all the clamour for extra defence spending and American concerns over submarine alliances, the UK’s AUKUS envoy has popped up on the ABC’s 7.30 to praise Australia’s “massive” contributions to the defence technology pact.
Stephen Lovegrove, who is in Australia “for talks with senior officials and top brass”, told the program he was not worried about the US review of AUKUS.
“The US Navy is right behind it; I speak to them a lot. The State Department is very much behind it [and] many players in the Defense Department are completely engaged in AUKUS and everything it brings to the US,” he said.
“So I’m pretty comfortable that we’ll end up with the right answer for the US, Australia and the UK — this is a critical, critical program.”
Now, obviously Lovegrove thinks AUKUS is great and claims to be confident in America’s love for it too. But really, all that matters is what Elbridge Colby declares in his review and what mood his boss is in when he strolls into the Oval Office to read it.
GOVERNMENT SCHOOLED ON ANTISEMITISM, AGED CARE
Later today, Albanese is set to appear with the special envoy to combat antisemitism Jillian Segal, where she will present recommendations urging the government to take stronger action against abuse toward Jewish Australians, Guardian Australia reports.
The site says the announcement will involve “a suite of measures expected to include education and online safety”, adding the government may not commit to implementing all the recommendations but Labor sources believed some “may be adopted quickly”.
Leading its homepage this morning, Guardian Australia also reports the chief executive of Uniting NSW.ACT Tracey Burton will warn in a speech today that Labor’s changes to Australia’s aged care system risk squeezing out elderly people with limited financial means.
Elsewhere, Coalition leader Sussan Ley has given an interview to The Australian Women’s Weekly in which she talks about discovering she was the new Liberal leader just before her mother passed away.
She also told the publication: “My elevation to this role as a woman does send a signal to women. It’s much more than that. It’s about our party, our policies and what we do next, but I am proud of the signal it sends. I want the women of Australia to know that I accept we didn’t meet their expectations and I’ll work incredibly hard to restore the faith and trust that we’ve lost.”
The Australian Financial Review reports political parties spent tens of millions of dollars on YouTube, Facebook and Instagram during the federal election, while also calling for greater regulation.
“Comprehensive analysis of Google and Meta’s ad libraries reveals Australian groups spent $75.9 million on political advertising with the two tech giants in the six months leading up to the May 3 election,” the paper reports.
And you may have heard, but Queensland claimed the State of Origin series last night with a 24-12 victory over NSW in the Game 3 decider in Sydney.
ON A LIGHTER NOTE…
A hiker in Switzerland has been rescued after falling eight metres into a crevasse — thanks to their heroic Chihuahua.
CBS News reports the man, who has not been named, was on the Fee Glacier in southern Switzerland with his pet when the snow bridge he was walking on collapsed.
The Air Zermatt rescue service said the man used his walkie-talkie to issue a distress call, which someone nearby heard and alerted the emergency services.
However, rescuers could not initially find him when the search began. “The glacier surface was wide and the hole was barely visible,” the rescue service said in a statement. “Then a decisive moment. One of the rescue specialists spotted a small movement on a rock: the Chihuahua!”
Air Zermatt said the dog had not moved from where its owner fell, and therefore the rescue crews were able to find him.
“The rescuers abseiled down to the casualty and were able to save him… The dog is a four-legged hero who may have saved his master’s life.”
Say What?
We are aware of recent posts made by Grok and are actively working to remove the inappropriate posts.
xAI
The Financial Times reports Elon Musk’s artificial chatbot “repeatedly praised Adolf Hitler and shared antisemitic rhetoric” on Tuesday.
CRIKEY RECAP
See the leaked teen social media ban tech trial report that has experts worried
When the people running Australia’s teen social media tech trial claimed their testing proved the technology can work effectively, the trial’s experts wondered why they hadn’t seen the proof.
After being underway for the better part of a year, the government-commissioned Age Assurance Technology Trial last month published a list of 12 conclusions. It had broad statements such as “age assurance can be done in Australia and can be private, robust and effective”, but did not include evidence backing them up. The supporting data was set to come in a report later this year.
Now, a privately circulated draft of the report has left some of the experts involved questioning whether the initial “preliminary findings” were overstated — and whether the trial’s claims are verging on misrepresentation.
Victoria’s draconian new anti-protest laws will have a chilling effect on free speech — and won’t keep anyone safe
In response to the weekend’s attack on the East Melbourne Hebrew Congregation, Victorian Premier Jacinta Allan has announced she will forge ahead with new anti-protest measures and more police powers.
In doing so, she is following what has become the new normal for state governments across the country: using acts of racism and violence as a pretext to clamp down on unrelated democratic rights.
Taking to the streets in peaceful protest is one of the main ways for people to come together and express their political views when our representatives aren’t listening to us. But this right is not without limits. Every person has a right to worship in safety. The attack on East Melbourne Synagogue was not a protest; it was an act of antisemitism. The suspect has been apprehended and charged with a multitude of criminal offences.
The last time an ‘America Party’ emerged, it (briefly) rewired US politics
Formed in the aftermath of his major falling out with US President Donald Trump over the recently passed massive spending legislation, “The Big, Beautiful Bill”, Musk hopes to gain the balance of power in the next midterms.
This is not the first time a populist third party has come about during a time of great anxiety over accelerating immigration, which allowed a conspiracy to bleed into mainstream politics that certain kinds of voters are being imported into the US to sway elections. It even had a near-identical name: the American Party.
READ ALL ABOUT IT
Desperate Gaza doctors cram several babies into one incubator as fuel crisis reaches critical point (CNN)
Russia launches record barrage of drones at Ukraine overnight (Sky News)
Linda Yaccarino departs as boss of Musk’s X (BBC)
Distressed community still calling for truth-telling (AAP)
As Truth Social business struggles, Trump media goes big on crypto (The New York Times)
Christian Horner: Former Red Bull team principal says sacking came as a ‘shock’ in tearful farewell speech (Sky Sports)
THE COMMENTARIAT
Trump’s copper tariffs will backfire on the US — Jennifer Hewett (AFR): The immediate political focus in Canberra is on the risk to Australia’s pharmaceuticals industry, given concerns the Trump administration will also target Australia’s pharmaceutical benefits scheme.
A delay of one year and possibly longer before imposing tariffs of up to 200% still gives exporters like CSL some time to adjust. The sizeable gap between what Trump says on tariffs and what ends up being implemented also suggests leeway between political risk and commercial reality.
But the economic focus for Australia’s major resources companies will be on what happens in the international copper market as a result of Trump’s announced 50% tariffs on copper imports from next month.
AI is driving down the price of knowledge — universities have to rethink what they offer — Patrick Dodd (The Conversation): Universities can no longer rely on scarcity setting the price for the curated and credentialed form of information that used to be hard to obtain.
The comparative advantage now lies in cultivating human skills that act as complements to AI. If universities do not adapt, the market — students and employers alike — will move on without them.
The opportunity is clear. Shift the product from content delivery to judgment formation. Teach students how to think with, not against, intelligent machines. Because the old model, the one that priced knowledge as a scarce good, is already slipping below its economic break-even point.
