Donald Trump tariff announcement: 100 per cent pharmaceutical products tax, 25pc on trucks, 50pc on furniture

President Donald Trump has announced a new 100 per cent tariff unless businesses start building plants in the US, with the Coalition now blaming Anthony Albanese for the key relationship failure that puts a $2.2b Australian export at risk.

Mr Trump said that from October 1, branded or patented pharmaceutical products would be hit with a 100 per cent tariff, with businesses only able to avoid the tax if they are “breaking ground” in the US.

“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump announced on Truth Social.

“’IS BUILDING’ will be defined as, ‘breaking ground’ and/or ‘under construction’.”

“There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started.”

Australia exports about $2.2 billion of pharmaceutical goods to the US, which is more than 40 per cent of the country’s total pharmaceutical exports of $4.9b. Healthcare stocks have fallen, some as much as 2.5 per cent, in response to the announcement.

Health Minister Mark Butler on Friday said the announcement won’t impact Australia’s long-held position that the PBS is “not up for negotiation” with the US and that the Government was still seeking further details.

“We’re very keen to understand the scope of the announcement this morning from the US administration,” Mr Butler told a press conference in Adelaide.

“None of these latest announcements for the US administration make a lot of difference to our determination to protect the PBS.

“I think it’s pretty clear that the core objective of the US administration is to lower drug prices in their own country and they’re using tariffs as a tool to try to achieve that objective.

“I guess our job now is to protect the interests of Australians, most importantly Australian patients who have benefited for almost 80 years from the PBS.

“And also, to do what we can to support Australian companies who might be hit by what we regard as ‘unfair, unjustified tariffs’ after 20 years of free trade.”

The announcement also comes ahead of Prime Minister Anthony Albanese’s first in-person meeting with Mr Trump on October 20 at the White House.

The PM has also had four phone calls with his US counterpart and the pair shared a selfie at a New York event hosted by Mr Trump and US First Lady Melania Trump earlier this week.

The Coalition labelled the latest tariff announcement as a “shocking but unsurprising development”, blaming Mr Albanese’s failure to build a strong relationship with Mr Trump as a major contributing factor.

“The Coalition strongly opposes the imposition of tariffs on Australia by the United States and we stand ready to help the government in any way to help protect Australia’s pharmaceutical sector and the jobs of Australians,” a Coalition statement signed by Opposition Leader Sussan Ley, shadow health minister Senator Anne Ruston and shadow trade minister Kevin Hogan said.

“It is deeply concerning that Australian pharmaceutical exporters will be subject to harmful tariff arrangements from 1 October.

“The 100 per cent tariff announced today puts this critical trade at risk, as well as the jobs thousands of people it employs and the savings Australians have invested in this sector. Australia has an export trade in pharmaceuticals to the US valued at over $2 billion.

“This is a shocking but unsurprising development and it is moments like this when a strong direct relationship with the President of the United States is critical to help save Aussie jobs. While other leaders are able to pick up the phone to the President, Anthony Albanese has not established such a relationship.”

In the latest tariff announcement blitz, Mr Trump also flagged a 50 per cent tariff on “kitchen cabinets, bathroom vanities and associated products” also slated to start on October 1, as well as a 30 per cent fee on imported upholstered furniture.

“The reason for this is the large scale ‘flooding’ of these products into the United States by other outside countries,” he wrote.

“It is a very unfair practice but we must protect, for National Security and other reasons, our manufacturing process.”

Mr Trump also announced a 25 per cent tariff on heavy trucks imported into the US.

More to come...