Donald Trump\u2019s tariff move has sent shockwaves through Australia\u2019s pharmaceutical industry, with CSL losing $2.4bn alone off the back of the announcement. <\/p>\n
Australian biotechnology giant CSL Limited is in free fall, losing $2.4bn in early morning trading, after Donald Trump announced he will slap a 100 per cent tariff on pharmaceutical goods not made in the US.<\/p>\n
The company\u2019s share price fell more than 5 points to 189.82 on Friday morning and have only marginally started climbing back.<\/p>\n
It marks a 2.52 per cent loss for CSL at the last close.<\/p>\n
CSL exports plasma-derived therapies to the US whose main active ingredients are proteins extracted from human plasma.<\/p>\n
In a statement, CSL said they were aware of the US President\u2019s announcement on tariffs but were not expecting any material impact.<\/p>\n
A spokesman added the company had a \u201csignificant\u201d manufacturing footprint in the US.<\/p>\n
\u201cWe are already expanding our US capabilities to meet the growing demand for our therapies and we have announced further expansion of significant, new capital investments during the next five years,\u201d a spokesman said.<\/p>\n
\u201cCSL will be actively monitoring further announcements from the administration in relation to the detail of the tariffs.<\/p>\n
\u201cAs per previous market guidance, we do not expect any material impact from these tariffs.\u201d<\/p>\n
Share prices in CSL tumbled 5 points after Donald Trump\u2019s announcement, marking a $2.4bn loss for the biotech giant. Picture: Supplied
US President Donald Trump on Friday announced a 100 per cent tariff on pharmaceutical goods not made in the US. Picture: AFP <\/p>\n
Other health care groups have also recorded substantive losses as a result of the US president revealing \u2013 via Truth Social \u2013 that the punitive new levy will start on October 1.<\/p>\n
Healthcare imaging software provider Pro Medicus suffered a 2.37 per cent loss on Friday morning, while hearing aid provider Cochlear Limited dropped 1.48 per cent and Telix Pharmaceuticals \u2013 which has commercial operations in Europe, Japan and the US \u2013 dropped 3.12 per cent.<\/p>\n
Mr Trump announced on Truth Social all imported pharmaceutical goods would be subject to the ban unless the company was \u201cbuilding their pharmaceutical manufacturing plant in America\u201d.<\/p>\n
Shares in Cochlear Limited also tumbled as a result of the tariff announcement. Picture: Supplied <\/p>\n
He clarified \u201cbuilding\u201d was defined as \u201cbreaking ground and\/ or under construction.\u201d<\/p>\n
\u201cThere will, therefore, be no tariff on these pharmaceutical products if construction has started,\u201d Mr Trump said in the announcement.<\/p>\n
Australia exports about $2.2bn of pharmaceutical goods to the US \u2013 more than 40 per cent of our total pharmaceutical exports of $4.9bn.<\/p>\n
Federal government figures have already reacted with outrage over the tariff move \u2013 with the Coalition releasing a joint statement on the \u201cdeeply concerning\u201d act.<\/p>\n
\u201cThe 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,\u201d the Coalition said in a joint statement from opposition leader Sussan Ley, health spokeswoman Anne Ruston, and trade spokesman Kevin Hogan.<\/p>\n
\u201cThis 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.<\/p>\n
\u201cWhile other leaders are able to pick up the phone to the President, Anthony Albanese has not established such a relationship.\u201d<\/p>\n
Both Labor and the Coalition have repeatedly ruled out using the Pharmaceutical Benefits Scheme (PBS) to negotiate a tariff exemption.<\/p>\n
Australian steel, aluminium and copper imports are already facing a 50 per cent levy, in addition to a 25 per cent tariff on cars, light trucks and automotive parts, and a baseline 10 per cent levy.<\/p>\n","protected":false},"excerpt":{"rendered":"Donald Trump\u2019s tariff move has sent shockwaves through Australia\u2019s pharmaceutical industry, with CSL losing $2.4bn alone off the…\n","protected":false},"author":2,"featured_media":45756,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[9344,138,40323,65,219,40324,111,139,69,40322,34847],"class_list":{"0":"post-45755","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-announcement","9":"tag-business","10":"tag-cochlear-limited","11":"tag-donald-trump","12":"tag-economy","13":"tag-mr-trump","14":"tag-new-zealand","15":"tag-newzealand","16":"tag-nz","17":"tag-pharmaceutical-goods","18":"tag-pharmaceutical-industry"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/45755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=45755"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/45755\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/45756"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=45755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=45755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=45755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}