US President Donald Trump has expressed intentions to impose 200 per cent tariffs on pharmaceutical products, which could have stark implications for Australian industry.

At a cabinet meeting on Wednesday (AEST), the US President said his administration would soon announce a ‘very high [tariff] rate, like 200 per cent’ on pharmaceuticals, alongside a 50 per cent tariff on copper.

Australian Treasurer Jim Chalmers told ABC Radio National the prospect of eye-wateringly high US tariffs on pharmaceuticals was “very concerning” for Australia.

“Our pharmaceuticals industry is much more exposed to the US market, and that’s why we’re urgently seeking some more detail on what’s been announced,” he said.

Unlike previously announced US tariffs, which were not projected to have strong direct impacts on Australia’s economy, pharmaceutical tariffs would sting for Australian producers.

The US is the top export destination for Australian pharmaceuticals, ANZ economists noted in March. A whopping A$1.9 billion of Australia’s pharmaceutical exports went to the US in the year to December 2024 – 58.7 per cent of exports in that category.

The fresh threats to Australia’s pharmaceutical industry prompted Chalmers to reiterate the government’s stance on Australia’s Pharmaceutical Benefits Scheme (PBS), which US corporations have previously raised concerns about.

“I want to make it really clear once again, as we have on a number of occasions before, our pharmaceutical benefits scheme is not something that [we’re] willing to trade away or do deals on – that won’t change.”

The PBS subsidises prescription medicines, allowing Australians to access vital medicines at an affordable price. It has previously come under fire from US ‘big pharma’ companies, who labelled the PBS as discriminatory to US pharmaceutical giants.

In a March submission to the US trade representative, a US pharmaceutical industry body labelled Australia’s PBS as an "egregious and discriminatory” pricing policy that “systematically devalues US medicines”.

In its submission, Pharmaceutical Research and Manufacturers of America complained that foreign schemes such as Australia’s PBS “threaten billions of dollars in lost sales and undermine American competitiveness, jobs and exports”.

Despite pressure from US corporate interests, Australian politicians have remained steadfast in their commitment to the PBS.

“The PBS is an essential part of our health system and there will be absolutely nothing that the Americans can do to impact on our health system or the PBS,” Trade Minister Don Farrell told Sky News in March.

“And we certainly would not contemplate doing anything at any stage that makes our health system more expensive.”