Medicines Australia firmly oppose US tariffs on pharmaceuticals

Medicines Australia firmly oppose US tariffs on pharmaceuticals

3 April 2026: Medicines Australia and our members support free, fair, and open trade and firmly oppose the proposed introduction of 100% tariffs on Australian branded and patented medicines exported to the US.

"Decades of decline in local manufacturing means the companies Medicines Australia represents do not significantly export to the US. Our understanding also is that CSL will be exempt for 2026. So proposed Tariffs are more likely to impact a relatively small number of Australian companies seeking opportunity in the US market," states Liz de Somer, CEO.

According to Australian Government data, Australia has a pharmaceutical trade deficit with the US. In 2025, Australia exported around A$1.91 billion in pharmaceutical products to the United States (US) but imported A$3.34 billion.

"As an industry, we are more concerned with President Trump's Most Favoured Nation reference pricing benchmark proposal as Australia currently has some of the lowest pharmaceutical prices, compared to other OECD countries," adds Ms de Somer.

"This is already impacting Australian patients' access to new innovative treatments, with companies introducing revised global policies which are slowing down new innovative products launching in Australia and exacerbating further delays to listings on the PBS.

"Some countries like the UK, EU and Japan have now undertaken negotiations with the US Administration to address both tariffs and US reference pricing policies. We must now consider the consequences of not addressing these global developments."

As stated by the Hon Minister Butler this week, the Productivity Commission confirms the 3 per cent a year increase in health productivity is due to improvements in treatment quality - particularly the growing impact of modern medicines that help people recover faster, avoid complications, and stay well for longer.

"This confirms the need to invest in innovative medicines for Australian patients and their families. It has been 30 years since the PBS has been reviewed and updated. We urgently need to move forward with proposed reform recommendations to our Health Technology Assessment (HTA) which includes the PBS," adds Ms de Somer.

"There is no time to wait. We started this process several years ago and need to work together now to ensure the PBS is faster, fairer and fitter for our future," she adds.

Media enquiries:
Anne-Marie Sparrow, Medicines Australia /Cube - [email protected] or 0417 421 560.

About Medicines Australia:
Medicines Australia leads the research-based pharmaceutical industry of Australia. Our members discover, develop and manufacture the medicines that are the foundation of a healthy and prosperous society, including prescription pharmaceutical products, biotherapeutic products and vaccines. Our members invest in Australian medical research and take local discoveries and developments to the world.