Australia circles wagon around drugs as US tariffs loom
After Donald promised to expand the trade war of trade, one of the biggest exports of Australia to the United States can be slapped with three -digit tariffs.
The US President organized plans to bring 200 percent tariffs to drug imports within a year and threatened Australia’s third most important exports to America.
Trump’s proposal comes after the powerful US pharmaceutical industry, who has long been a problem with Australia’s drug subsidies plan and wants to take action to sell drugs to the Australians for more.
The announcement can be seen as a way to disintegrate the US in the pharmaceutical benefits program in exchange for a tariff exemption or trade agreement.
However, Treasurer Jim Chalmers rejected it.
“Pharmaceutical Benefits Plan is not something we want to trade or make an agreement,” he said on Wednesday.
Mr. Trump also announced a 50 percent tariff on copper imported to the United States, but the United States creates less problems for Australia, as it constitutes less than one percent of copper exports.
According to the Australian Statistical Office, Australia sent $ 2.1 billion medical and medicine to the US in 2024.
The words of the President are the last of a series of new trade measures after explaining a 25 percent tariff from Japan and Korea, the second and third largest export markets of Australia.
Monash University Economic Faculty Member Isaac Gross said that although Australia has survived for now, it remained vulnerable for flow effects.
One of the main exports of Australia to Japan and South Korea is the iron ore used to make vehicles sent to the USA, most of them.
However, if automobile sales fall into the American market, this may mean less demand for Australian iron ore that may affect mining giants such as BHP and Rio Tinto.
Dr Gross told AAP, “The main way affecting the Australian economy is a lower Australian dollar and less tax income,” he said.
“This will affect Australians as a whole… Especially in mining states, it will certainly harm the government’s budget line and reduce economic activity.”
South Korean or Japanese goods, which are normally exported to the USA, can be sent to Australian consumers as they can be sent to Australia at a discount.
However, Dr Chalmers claims that the increasing trade tensions in the world are “important concern ve and that tariffs pose a risk for global growth.
Some countries have tried to make trade agreements with the United States to gain certainty from tariff volatility.
However, according to Sydney University Associate Professor David Smith, many are now disappointed.
“They think the negotiations are going in one direction, and then Trump makes a sudden announcement that takes him in another direction,” AAP said.
Prime Minister Anthony Arbanese encountered increasing pressure to plan a face -to -face meeting with the US President and put pressure on total tariff exemption.
However, it is not clear whether this will work.
Japanese Prime Minister Shigeru Ishiba met Mr. Trump in February, but Until July, US President announced the increasing tariffs in the Nation of Asia and in the last interview, he called him the leader’s leader.
“I can see why the Prime Minister will seek a face -to -face meeting, but he does not have the same certainty in the past, Prof said Prof Smith.
“Now we are in a situation where the US is trying to negotiate 100 trade agreements at once – clearly beyond the capacity of American negotiators.
“Trump is very disappointed. He blames other countries for Trump’s slowness of negotiations and now goes out.”
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