<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>President </span><a href="https://www.9news.com.au/donald-trump" rel="" target="_blank" title="Donald Trump"><span>Donald Trump</span></a><span> has imposed a 100 per cent tariff on some pharmaceuticals manufactured outside the US, potentially a heavy blow for one of Australia's biggest exports to the country.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trump signed the order overnight, but it won't take effect for some months.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The forthcoming tariff will apply to imports of patented drugs and their active ingredients, in an effort to pressure foreign manufacturers to move their production to the US and negotiate agreements to sell their medicines directly to Americans.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-live-updates-april-3-donald-trump-latest-world-news-headlines/9ae35c37-7ca8-4b1e-ae30-753e5304eff4" rel="" target="_blank" title=""><strong><span>'More to follow': Trump posts video of key Iranian bridge cut in half</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The long-anticipated levies will take effect for large drugmakers later this summer, following a 120-day implementation period, a senior administration official told reporters. Smaller companies, by contrast, will get 180 days before the tariffs kick in.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We expect the lion's share of the world's patented pharmaceuticals to be building" in the US by then, the senior official said. "They've had plenty of warning and we are going forward with it."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The new order includes a series of exemptions from the 100 per cent tariff, including for any company that strikes a deal to join Trump's "Most Favoured Nation" initiative. Drugmakers that agree to move their production to the US will also get their tariff cut to 20 per cent in exchange.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/donald-trump-imposes-100-per-cent-pharmaceutical-tariffs/c1e4352a-4974-4d53-a333-daadbe68aa1f" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/pam-bondi-leaves-us-attorney-general-role-donald-trump-announces/68822fbf-1eb5-4adc-856a-f92caf2c493e" rel="" target="_blank" title=""><strong><span>Pam Bondi out as US attorney general after controversial tenure</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But even without taking those steps, many foreign drugmakers may end up avoiding the hefty tariff because of broader trade deals that several countries have already made with the Trump administration. Companies in the European Union, Japan, South Korea, Liechtenstein and Switzerland will only be subject to a pre-existing 15 per cent tariff, while UK companies face just a 10 per cent tariff.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian exports are subject to a baseline 10 per cent tariff, but despite pre-existing free trade agreements with the US, none have been struck with Trump over pharmaceuticals.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia's Pharmaceutical Benefits Scheme has also been a target of ire among Trump's trade advisors.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-iran-fires-on-israel-and-gulf-neighbours-as-donald-trump-claims-threat-from-tehran-nearly-eliminated/9dad9d32-01b2-49e4-830e-eca9072d0c45" rel="" target="_blank" title=""><strong><span>More than 40 nations meet to discuss securing the Strait of Hormuz</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The senior official declined to say how many companies would be hit by the 100 per cent tariff.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Pharmaceuticals are one of Australia's biggest exports to the US, amounting to about $1.6 billion in 2023-24.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The new drug tariffs would represent an initial step toward Trump's pledge to reconstruct his aggressive trade strategy after the Supreme Court ruled in February that some of his most significant and far-reaching tariffs were unconstitutional.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Until now, many of the tariffs that Trump has levied on other countries have excluded prescription drugs.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The administration has already negotiated deals with more than a dozen drug companies to sell certain medications directly to consumers as part of a "Most Favoured Nation" pricing initiative aimed at lowering drug prices. As part of those deals, the drug makers escape tariffs for three years in exchange for increased manufacturing investment in the US.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The initiative includes selling medications directly to consumers on TrumpRx, but that measure only covers a limited number of drugs so far, many of which have generic alternatives that can be found cheaper elsewhere.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><span>With CNN.</span></em><span></span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>