Trump’s new tariffs could impact one Australian export industry
Updated . First published
Donald Trump has announced new tariffs which could have ramifications for a significant Australian export industry.
The president wrote on Truth Social that he would effectively double the price of imported generic drugs.
Donald Trump has announced new tariffs on generic drugs being exported to the US. AP Photo/Mark Schiefelbein
“All Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT for a two year period of time, after which the TARIFF will be raised to 100% for a one year period of time, and 200% thereafter,” he wrote.
“This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them.”
Trump said the objective of the policy was to “protect the people of the United States”.
“The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is,” he said.
“Pharmaceutical Facilities are being built, at a level never seen before, all over the United States of America.”
Pharmaceuticals are one of the biggest Australian export industries to the United States, worth an estimated billion dollars every year.
Much of those exports are made by a single company - CSL.
Americans can expect to pay dramatically more for imported generic drugs. Jessica Shapiro
But University of Melbourne Research Fellow Joe Carrello said CSL’s main export of blood plasma was unlikely to be impacted.
“Blood plasma products are mainly used for transfusions in a range of medical and surgical situations and as such do not fall under a brand-name or generic label,” Carrello said.
“I would suggest that President Trump’s latest announcement is unlikely to make a major impact on our local industry.”
A CSL spokesperson has told nine.com.au it does not produce generic drugs.
Whether Trump’s tariff proposal will hold up in court will be a major question.
The president has a long history of announcing tariffs which are later struck down as unlawful because they haven’t been legislated through Congress.
And his announcement today would only raise tariffs for the final six months of his presidency. The next president could remove these tariffs immediately if they so chose.
On Tuesday the White House announced 50 per cent tariffs on a wide swath of products imported from Canada.
Donald Trump slapped new tariffs on Canadian imports this week. AP Photo/Mark Schiefelbein
This included alcoholic drinks, dairy products, cars, cement and ice hockey sticks.
“Canada has been very, very tough on us over the years, for many years, and no other president’s done anything about it,” Trump said.
“In all fairness to them, they need us to survive. Without us, there’s no way they can survive.”
On Friday Trump threatened new tariffs on Canada after wildfire smoke from Ontario drifted over Washington DC.
“We are holding Canada responsible for the fact that they are not properly maintaining their Forests, and Brush therein, and the United States is being unnecessarily invaded by filthy, polluted, and unhealthy air, the quality of which is dangerous, and totally unacceptable!” the president wrote in a Truth Social post.
Smoke from Canadian wildfires blankets downtown Cleveland. AP Photo/Sue Ogrocki
“I will call the Prime Minister during the day to find out what they are going to do about it. The cost is incalculable!”
Trump continued his post with more accusations against America’s northern neighbour.
“Canada has refused to engage in basic Forest Management and Debris Removal, knowing that such refusal will lead to exactly this result,” the president said.
“This is Willful Negligence, and becoming a yearly occurrence, costing the United States Billions of Dollars, which cost of this pollution must of necessity be added to the TARIFFS Canada is currently paying.”
The formal tariff announcement did not mention the smoke.
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