Politics Now Will Trump's tariffs make medicine more expensive?
Jul 9, 2025
Brett Worthington, an insightful ABC political journalist, dives into the hot topic of Trump's proposed pharmaceutical tariffs, which could spike medicine costs by 200%. He discusses how this might shift Labor's dialogue and impact US negotiations amid economic uncertainties. The chat also covers the nuanced ties between Australia and China, emphasizing the need for coherent trade strategies amidst diplomatic tensions. Worthington highlights the broader implications for Australian exports and the Reserve Bank's interest rate decisions in a complex global landscape.
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Threat to Australia's PBS
- Trump's potential 200% tariffs on pharmaceuticals pose a significant threat to Australia's pharmaceutical exports.
- The Australian government is firm on defending the Pharmaceutical Benefits Scheme (PBS) despite US pressure.
Strong Public Support for PBS
- Australians broadly support affordable access to medication through the PBS, creating strong political resistance to changes.
- The public consensus makes any tampering with drug pricing politically risky.
Negotiating Drug Approval Delays
- US pharmaceutical critics also complain about the slow drug approval process in Australia.
- Speeding up drug listings could be a negotiation point without altering PBS pricing.