Minerals Council says Australian trade diversification is ‘right response’ to US copper tariffs
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More news: The Minerals Council of Australia has called on the federal government to maintain its focus on building a more resilient and productive economy with diversified trading partners rather than impose retaliatory tariffs on the US’ potential 50% copper tariffs.
Although Australia’s copper exports to the United States “are limited”, Minerals Council chief executive Tania Constable said in a media release that “trade restrictions imposed on other key trading partners” could disrupt global supply chains, increasing costs and uncertainty for local companies.
What they said: Urging the government against retaliatory tariffs, Constable said “the right response is not to raise barriers, but to make economies more resilient, productive and globally connected”.
“As geopolitical risks rise and others turn inward, Australia has the opportunity to step forward by deepening and securing supply through trade partnerships, expanding export markets, and reinforcing our position in global supply chains,” Constable said.
“That means continuing to position Australia as a trusted, low-risk partner for critical minerals and resources.”
She also said the mineral industry group backs the government’s current focus on “strengthening economic resilience, diversifying export markets and working with global partners to restore trade stability”.
Coalition says pharmaceutical tariffs show Albanese failing on US relationship
More news: US President Donald Trump’s intention to levy huge tariffs on pharmaceuticals demonstrates the Albanese government’s failure to cultivate Australia's bilateral relationship according to federal shadow minister for trade, investment and tourism Kevin Hogan.
What they said: The Nationals MP said the Trump administration’s planned 200% pharmaceutical tariff “would be a serious escalation” considering that the US soaks up $2 billion worth of Australia’s pharmaceutical exports annually, 40% of the industry’s export market.
“This should have been raised at the highest levels months ago. It is frankly embarrassing that our Prime Minister has still not secured a meeting with President Trump,” Hogan said.
“I don’t believe the PM has done everything he can to advance this important relationship. The Coalition, when in government, successfully negotiated exemptions from damaging U.S. tariffs. Labor has dropped the ball and Australian businesses are paying the price," he said.
When considering US steel and aluminium tariffs that were raised to 50% in June, Hogan has called on the Prime Minister to “act before more damage is done to Australia’s export economy”.
Treasurer says Australia ‘urgently’ seeking details on Trump’s touted new pharmaceutical tariff
More news: Australian Treasurer Jim Chalmers said the Albanese government is urgently seeking more detail on the “very concerning” threat of new US tariffs on pharmaceuticals, after President Donald Trump said imported drugs would likely face tariffs of up to 200% within a year or two.
Trump also said a 50% tariff on copper would be announced Tuesday (Wednesday AEST), and that after giving companies about a year to relocate production to the US, pharmaceutical imports could be tariffed at a “very, very high rate, like 200%.”
What they said: Chalmers called the announcements “very concerning developments” and said Australia’s pharmaceuticals industry is “much more exposed to the US market” than copper, which accounts for less than 1% of exports to the US.
“That's why we're urgently seeking some more detail on what's been announced,” Chalmers said, speaking on ABC Radio National.
“But 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,” he said.
The context: The PBS caps drug prices in Australia, and has come under pressure from US pharmaceutical companies who have lobbied to charge more and blamed it for delays to market access.
All three sectors, pharmaceuticals, copper and semiconductors, are under Section 232 national security investigations by the US commerce department, which can recommend tariffs on imports deemed a threat to national security.
"We’re not willing to compromise the PBS. We’re not willing to negotiate or trade away what is a really important feature of the health system, alongside Medicare and all of the other things that we’re proud of as Australians," Chalmers added.
Trump earlier said companies would have “about a year, a year and a half to come in” before drug tariffs take effect. He also said tariffs on semiconductors would be announced soon.
Trump previews 50% copper import tariff, flags up to 200% on pharmaceuticals
The news: US President Donald Trump said a new 50% tariff on all copper imports will be announced Tuesday (Wednesday AEST), and also previewed tariffs of up to 200% on pharmaceuticals.
The numbers: Speaking during a Cabinet meeting, Trump said, “Today we’re doing copper,” and added, “I believe the tariff on copper we’re going to make it 50%.” He did not specify when the tariff would take effect. His comments follow a Section 232 investigation into copper imports ordered in February.
Copper futures in New York surged as much as 17% following the remarks.
Trump also said the US will soon impose tariffs of up to 200% on pharmaceuticals, but companies would be given about a year to a year and a half to reshore supply chains before they come into effect.
He said tariffs on semiconductors will also be announced but did not provide any details.
The sources: The White House, The Wall Street Journal, Bloomberg
