Trump’s Drug-Pricing Threat to Australia PBS Medicine

President Donald Trump’s latest push to force U.S. drug companies into “global benchmark” pricing and impose steep tariffs on pharmaceutical imports has sparked alarm in Australia, where experts warn it could undermine access to affordable PBS medicine.

Under Trump’s proposals, American drug manufacturers may be compelled to lower U.S. list prices to match those in other wealthy nations — including Australia — or face punitive trade measures. At the same time, Trump has floated a 100 percent tariff on branded drugs not produced in the U.S., effective October 1, a move that could hit exporters around the world.

For Australia, the stakes are high. The country’s Pharmaceutical Benefits Scheme (PBS) regulates subsidised drug pricing domestically, keeping medicines affordable for patients. Critics warn that U.S. pressure could push drug companies to either withdraw from Australia, delay new drug listings, or resist PBS medicine discount negotiations — any of which would strain Australian patients’ access to treatments.

The matter has already strained markets: Australia’s leading biotech firm CSL saw its stock plunge after news of Trump’s tariff plans. Meanwhile, the government has launched diplomatic efforts to clarify the U.S. proposals and to safeguard the PBS as non-negotiable. Treasurer Jim Chalmers stated that Australia is “urgently” seeking further details and reiterated that the PBS would not be offered as a bargaining chip.

Public health voices and industry analysts stress that, even if the proposals are U.S.-centric, the reverberations could be felt globally. One concern is that price cuts in the U.S. may drive up prices elsewhere, as drug makers attempt to recoup losses.

As Australia prepares for talks with U.S. officials, many will be watching whether the world’s biggest pharmaceutical markets can reconcile trade policy ambitions with equitable access to medicines.