Australian pharmaceuticals exempt from Trump's sweeping 10 per cent tariffs

The federal government would not impose reciprocal tariffs, Mr Albanese said on April 3.

But Mr Trump has spared the lucrative pharmaceuticals and bullion sectors from 'Liberation Day' tariffs.

A White House factsheet says copper, pharmaceuticals and bullion would not be subject to reciprocal tariffs.

However, in a tariff oddity, Mr Trump has also levied 10 per cent tariffs on the uninhabited Australian territories of Heard Island and McDonald Islands and a 29 per cent tariff on Norfolk Island with a population of 2,200.

It comes after Mr Trump on April 3 targeted Australian beef with "reciprocal" tariffs threatening the $7 billion meat export industry.

Most Australian goods entering the US will be slapped with 10 per cent tariffs, which is believed to be a global baseline rate, according to a White House document.

"Australia bans American beef," Mr Trump said, singling out Australia's farmers. The meat tariffs will start within hours, he said.

"We imported $3 billion of Australian beef from them just last year alone.

"They won't take any of our beef," Mr Trump said.

Speaking from the White House Rose Garden Mr Trump said 'Liberation Day' was the day "America's destiny is reclaimed".

"Foreign leaders have stolen our jobs. Foreign cheaters have ransacked our factories. Not going to happen any more," Mr Trump said.

The US is Australia's largest market for lamb, beef and goat meat. In 2024, Australia exported almost 400,000 tonnes of beef to the US, according to Meat and Livestock Australia.

The new duties follow President Trump's announcement on March 12 that the US would impose 25 per cent tariffs on $1 billion of steel and aluminium products from Australia..

National Farmers Federation president David Jochinke told ACM that any new restrictions would be "disruptive".

"We continue to engage with the government to ensure the best possible outcome for our industry," he said

Australian Meat Industry Council CEO Tim Ryan said while the US is a "significant and highly valued trading partner for Australian meat" demand for Australian products remains strong both within the US and globally.

"Producers, processors and exporters should be comforted by the fact that Australian meat is world-renowned and widely sought after in the US and elsewhere," he said.

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"Seasonal conditions, topography and climate vary between our two countries, underpinning differences in meat production systems and enabling Australia to complement seasonal and cyclical gaps in US supply," Mr Ryan said.

Red Meat Advisory Council chair John McKillop said Australian beef fed America's "strong appetite for hamburgers".

"Australian beef is in an estimated six billion hamburgers consumed each year in the US and this tariff will cost the US consumer an additional US$180 million per year," he said.

"Without Australian lean beef blended with local fatty trim, the US would need to use higher value cuts in their burgers and miss out on valuable export opportunities."

He said Australian imports were "a shock absorber" as meat supply fluctuated.

"Cow slaughter in the US was down 23 per cent in 2024 and expected to decline near 10 per cent in 2025," he said.

"This means that imports are critical for the US to supply their domestic consumers."

Assistant Minister for Competition, Charities, Treasury and Employment Andrew Leigh said President Trump's decision to impose tariffs on Australian exports was "unjustified and will hurt their consumers"

The US is Australia's third-largest trading partner. Australia's goods and services exports to the US were $33.6 billion in 2023 and Australia's total imports were $65.1 billion, according to the Department of Foreign Affairs and Trade.

Mr Jochinke supported Australia's decision to not impose reciprocal tariffs and praised the government for "standing firm in defence of Australia's science-based biosecurity framework".

"The Australian agricultural industry supports a considered and measured approach to negotiations with the United States and will work closely with the government and all sides of politics to seek a resolution to this issue," Mr Jochinke said.

"Australian producers are resilient in the face of challenges. Being among the least subsidised farmers in the world has seen the sector become highly efficient and productive," he said.

"While this decision creates unnecessary uncertainty, we remain confident in the strength of Australian agriculture. Our products are sought after worldwide for their quality, sustainability, and reliability."

President Trump has included Heard Island and McDonald Islands, external territories of Australia, in his sweeping tariffs.

A 10 per cent tariff was applied to the islands despite them being extremely remote and uninhabited. He has also levied a 29 per cent tariff on Norfolk Island as well as a 10 per cent tariff on Christmas Island.