Chalmers says Trump’s threats of 200% pharmaceutical tariffs are ‘very concerning’
Chalmers says Trump’s threats of a 200% tariff on foreign pharmaceuticals and 50% on copper are “very concerning developments”.
The treasurer says the Australian government is urgently seeking more detail. He is speaking on ABC Radio National:
Our pharmaceuticals industry is much more exposed to the US market, and that’s why we’re seeking, urgently seeking, some more detail on what’s been announced. 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 are] willing to trade away.
We see the PBS as a fundamental part of healthcare in Australia … We’ll work through the announcement out of the US overnight. They’re obviously very concerning developments. We are talking about billions of dollars of exports to the US when it comes to pharmaceuticals.
So we’ll work through it in a methodical way, but we make it clear once again, as we have on a number of occasions in recent months, that the PBS is not on the table.
Australia exports about $2bn worth of pharmaceuticals – mainly vaccines and blood products – to the US each year.
Key events
Understaffing is impacting children’s safety, early educators have said in a survey.
The United Workers Union Early Childhood Education and Care Quality and Safety Census survey of more than 2000 early childhood educators – which was conducted before a a Melbourne childcare worker has been charged with allegedly sexually abusing infants and children in his care – “exposed systemic issues that made it impossible to deliver the required quality of care,” UWU said in a statement.
The “vast majority of educators” said “understaffing is putting children at risk,” the statement said.
77% of educators said they are operating below minimum staffing requirements at least weekly. 83% of educators strongly agree a “common staffing loophole” that UWU says allows centres to move educators between rooms and count educators not on the floor towards minimum staffing requirements “compromises the safety and wellbeing of children”.
Carolyn Smith, UWU Early Education Director, said:
The hard truth is that more than three quarters of educators say they are regularly staffed below minimum requirements in their rooms.
We need to support educators to do their best work, and our survey results show that the system is failing them and, in turn, the children in their care.
While examining the tragic events revealed in Melbourne last week, we also need to understand the alarm that is being sounded by educators.
One educator from Victoria said: “I can’t even guarantee the safety of the children and myself. I feel sad, unsafe and stressful every day.”
Man to face court over alleged $3m spiritual ‘blessings’ scam
Another person accused of being involved in a “fly-in, fly-out” syndicate leveraging cultural superstitions to scoop up cash and jewellery has been charged.
A 62-year-old man faces fraud and criminal group offences related to the alleged scam, which police say convinced the women to hand over money and valuables to be “blessed”.
They were told not to open bags meant to contain their valuables, which the alleged fraudsters had switched out, according to police.
NSW Police allege it’s the work of a “fly-in, fly-out” criminal syndicate.
The alleged scammers typically come to Australia from China for short stints to carry out the fraud, convincing older women that their money and belongings needed to be “blessed” to avoid bad luck, police claim.The man was arrested on Friday at Brisbane Airport and extradited to Sydney on Tuesday. This follows the arrest of a 63-year-old woman at Sydney Airport on Thursday night.
Detective Superintendent Guy Magee said the alleged scammers typically targeted older Asian women, exploiting cultural superstitions.
More than 50 individuals are believed to be connected to the alleged scam across the east coast of Australia, with 11 arrest warrants issued. Police have received reports of more than 80 incidents across Sydney since 2023. They are trying to find a further seven people believed to be involved in the syndicate.
The alleged scams are believed to have netted $3 million in cash and valuables.
– Australian Associated Press
Patrick Commins
Markets pricing in 90% chance of RBA rate cut in August
Undaunted by the Reserve Bank’s surprise decision to hold rather than cut rates yesterday, financial markets are now pricing in a 90% chance of a move lower at the next meeting on 12 August.
Michele Bullock, the RBA’s governor, made it clear yesterday that the bank’s board believed rates were on the way down, and it was more a question of taking a more cautious approach.
That wrong-footed most economists, and analysts on Wednesday morning were tempering forecasts for an August cut, with Westpac saying “there is a small chance even this is delayed”.
By the time of the next meeting the RBA will have another jobs report and, crucially, inflation figures for the three months to June.
Markets are still expecting two or three more cuts by the end of the year.
For investors, though, there is a much bigger game in town, and that’s Trump’s confounding tariff policy.
That said, talk of copper and pharmaceutical tariffs overnight were received reasonably calmly on Wall Street and the local sharemarket is set to open only a little lower, according to futures trade.
Andrew Forrest and other business leaders to join Anthony Albanese on China trip
Tom McIlroy
Business leaders have welcomed Anthony Albanese’s confirmation he is headed to China at the weekend, ahead of his second meeting with the country’s president, Xi Jinping.
The PM is headed to Shanghai, Beijing and Chengdu during a week-long trip.
Fortescue boss Andrew Forrest will be part of a business delegation joining the visit.
“The Prime Minister’s visit could not come at a more critical time for Australia’s future,” Forrest says.
To put it bluntly: if Australia and China provide the leadership, then – given the immense industrial platforms that exist in both nations – Australia could build its largest-ever industry in green iron, and China its largest in green steel.
The economic benefits would be profound for both countries: tens of thousands of new jobs, an upskilled workforce, and a solution to one of the world’s biggest climate threats – the global steel industry.
Chalmers says US tariffs ‘bad for Australia’ and ‘bad for the US’
Jim Chalmers says global trade tensions are a “substantial concern” to Australia.
The treasurer, who was speaking on ABC RN a moment ago, says Trump’s tariffs “pose a risk to the progress that the world has been making in our economies after Covid”.
Australian industries and workers, as well as trade in the region, will feel the impact of “escalating trade tensions around the world”, he says.
When we work through the possible consequences of what we’re seeing here, it does pose a risk to global growth. It does pose a risk to the progress that the world has been making in our economies after Covid. We’ve made it really clear on a number of occasions, these tariffs are bad for Australia. They’re bad for the US. They’re bad for the global economy. And so these developments, they are sometimes unpredictable. There’s been an element of volatility and uncertainty injected into the global economy.
Following on from the last post – some background on big pharma taking aim at Australia’s pharmaceutical benefits scheme.
Pharmaceutical companies in the US – where millions can’t afford life-saving drugs – have tried to interfere in Australia’s national, subsidised medicine system.
In Australia, prices for pharmaceutical medicines are capped at $31.60 if listed on the Pharmaceutical Benefits Scheme (PBS). It’s a far cry from the prices Americans pay (Lipitor, a cholesterol-lowering drug that prevents heart attacks and strokes, can cost about A$2,000 in the US, and autoimmune drug Humira more than $11,000, for example). A report by research organisation Rand found that US drug prices were, on average, about 370% higher than in Australia and 278% above the OECD average.
Big pharma in the US wants to sell more drugs in Australia for more, with its demands entangled with the ongoing trade tariff war.
In March, The Pharmaceutical Research and Manufacturers of America (PhRMA) took aim at the PBS in a submission to the US government for not allowing them to charge Australians more and for delays getting their products to market.
Read the full explainer from Tory Sheperd here:
Chalmers says Trump’s threats of 200% pharmaceutical tariffs are ‘very concerning’
Chalmers says Trump’s threats of a 200% tariff on foreign pharmaceuticals and 50% on copper are “very concerning developments”.
The treasurer says the Australian government is urgently seeking more detail. He is speaking on ABC Radio National:
Our pharmaceuticals industry is much more exposed to the US market, and that’s why we’re seeking, urgently seeking, some more detail on what’s been announced. 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 are] willing to trade away.
We see the PBS as a fundamental part of healthcare in Australia … We’ll work through the announcement out of the US overnight. They’re obviously very concerning developments. We are talking about billions of dollars of exports to the US when it comes to pharmaceuticals.
So we’ll work through it in a methodical way, but we make it clear once again, as we have on a number of occasions in recent months, that the PBS is not on the table.
Australia exports about $2bn worth of pharmaceuticals – mainly vaccines and blood products – to the US each year.
Chalmers says millions of people were hoping for interest rate relief yesterday
Jim Chalmers says “there were millions of people who were hoping for more rate relief yesterday and didn’t get it”.
The treasurer is speaking on ABC Radio National after the Reserve Bank left the cash rate on hold.
While he doesn’t “second guess decisions once they’re taken”, he says “it’s certainly the case that the market was surprised”.
Trump: ‘TARIFFS WILL START BEING PAID ON AUGUST 1, 2025’
Donald Trump says more tariff letters are to come in the next “short period of time”.
The US president has been posting letters on his Truth Social account to the leaders of numerous nations including Thailand, Cambodia, Serbia, Japan, Indonesia and South Africa, informing them that America would continue with plans to level large tariffs on their exports of between 25% and 40%.
As of yesterday, Australia has not received a letter.
Trump posted to Truth Social today:
As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025. There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 – No extensions will be granted. Thank you for your attention to this matter!
Trump threatens 200% tariff on foreign pharmaceuticals
Donald Trump has threatened a 200% tariff on foreign pharmaceuticals – which Australia exports about $2bn worth of to the US each year.
Speaking yesterday, the US president laid out plans to step up his controversial trade strategy – imported copper will face a US tariff of 50% in a bid to bolster US production of the metal, the administration announced. US copper prices rose 12% to hit record levels.
After providing manufacturers with around a year or a year and a half’s notice, pharmaceutical imports are also “going to be tariffed at a very, very high rate”, Trump said. “Like 200%.”
“We’re going to be announcing pharmaceuticals, chips and various couple of other things – you know, big ones,” he added, of the administration’s tariff plans.
Read more:
Disappointment as Reserve Bank leaves rates on hold
From struggling retailers to squeezed mortgage holders, the Reserve Bank of Australia’s surprise call to leave interest rates on hold has left many disappointed.
Markets and economists were broadly in favour of a 25 basis point cut in July but the central bank board has decided to wait for more evidence on inflation before considering lowering the cash rate further.
Interest rates have already been cut twice this year as inflation tracks lower and the central bank’s focus switches to growth prospects and job market resilience.
RBA governor Michele Bullock acknowledged that households with mortgages would have been “very keen” for another interest rate cut to ease budget pressure. She said:
I’m also really conscious that we don’t want to end up having to fight inflation again.
The Australian Retailers Association described Tuesday’s decision as a “missed opportunity” to improve the outlook of a sector employing one-in-10 Australians.
“Weak consumer spending and high business costs continue to put pressure on retailers,” ARA chief executive Chris Rodwell said.
– via Australian Associated Press
Rafqa Touma
Thank you to Martin Farrer for kicking off the live blog this morning. I’ll be updating you on the day’s news from here – let’s get into it.
TGA’s new sunscreen safeguards
The Therapeutic Goods Administration (TGA) has recommended sunscreen manufacturers reformulate their products to add safeguards for two ingredients following a review into their efficacy.
It follows a Choice investigation last month which found some of Australia’s most popular sunscreens, including some made by Bondi Sands, Banana Boat and the Cancer Council, are falling short of the level of skin protection on the bottle – a claim disputed by providers.
The TGA said providers manufacturing sunscreens containing the active ingredients homosalate and oxybenzone, as well as the byproduct benzophenone, have been advised to add additional controls “to ensure sunscreens meet the highest standards of safety for prolonged and frequent use”.
The TGA said the review was prompted by “regulatory developments overseas, adoption of the Australian sunscreen exposure model external site and the TGA’s scientific literature review of sunscreen ingredients”.
A comprehensive public and stakeholder consultation will begin … to help determine the level in sunscreens at which these ingredients remain suitable for use in Australian sunscreens.
All sunscreens available in Australia are safe. The TGA is not recommending a change in the use of sunscreens, nor are there any warnings, bans or recalls of any products.
Australia in talks with Ukraine about a defence pact, documents suggest
Australia is negotiating a security agreement with Ukraine to boost defence cooperation and codify support following Russia’s invasion, Australian Associated Press reports.
Defence experts say such a pact could help bolster collaboration between the two nations to boost Australia’s capabilities.
Largely redacted briefing material prepared for the foreign affairs minister, Penny Wong, ahead of her December 2024 trip to Ukraine confirms the possibility of a security pact, but details remain classified.
Of the 28 bilateral security arrangements finalised with Ukraine as of late 2024, none were legally binding or included mutual defence or security obligations, one briefing document noted.
Ukraine’s ambassador to Australia, Vasyl Myroshnychenko, did not comment on any specific provisions that had been proposed due to the sensitivities of negotiations.
But he pointed to broad areas of collaboration such as intelligence sharing, drone technology and humanitarian assistance that have been covered in similar bilateral security agreements between Ukraine and other nations.
A British pact pledged increased cooperation between defence companies and the Ukrainian army, including building military repair facilities and providing cyber defence technology.
Humanitarian provisions are outlined in Japan’s agreement, which pledges to provide medical treatment for wounded Ukrainian soldiers.
Japan and Ukraine also agreed to share and protect classified intelligence.
Ukraine has developed sophisticated drone capabilities after the three-and-a-half-year war that followed Russia’s invasion.
“The innovation we have, no one in the world has it”, Myroshnychenko said.
Oleg Vornik, the boss of an Australian company called DroneShield, said the war showed drones had become central to modern warfare, “necessitating rapid innovation in counter-drone technologies”.
The Australian company bolstered Ukraine’s defences by giving soldiers the ability to detect and disable enemy drones.
A bilateral agreement between Ukraine and Australia would significantly elevate the company’s ability to “operate more directly and responsively on the ground”, Vornik said.
He pointed to an arrangement in place between DroneShield and Ukrainian operators to ensure technology could be rapidly updated to tackle emerging threats.
G8 Education to install CCTV in its childcare centres
Australia’s largest childcare provider, G8 Education, will install CCTV in all of its centres and allow parents to provide preferences on who conducts nappy changes and toileting after child abuse charges were laid against a former employee, Joshua Dale Brown.
Dale, 26, was charged with more than 70 offences relating to eight alleged victims aged between five months and two years old.
In an announcement to investors on Tuesday evening, managing director and chief executive of G8 Education Limited, Pejman Okhovat, said the team was “horrified and appalled” by the allegations.
“These allegations are deeply disturbing, and our hearts go out to all the children and families involved. I am deeply sorry for the unimaginable pain caused to our families and what they are going through.”
Okhovat said following the trial of CCTV in several centres, it would be rolled out to all operators in light of the allegations. In addition to greater parents’ choice over their children’s care, G8 would also commission an independent review into the incident following the police investigation and criminal proceedings.
RecipeTin Eats cook upset her beef wellington recipe ‘entangled in a tragic situation’
Nagi Maehashi, the Australian cook behind RecipeTin Eats, says it is “upsetting” to have become “entangled in a tragic situation” after it was revealed her beef wellington recipe was used by Erin Patterson to lace a meal with death cap mushrooms.
During the trial, Patterson said she made multiple changes to the RecipeTin Eats recipe she was using to prepare the fatal beef wellington two years ago. It was a dish she had never made, but she wanted to try something special for her guests, she said.
The recipe is described on Maehashi’s website as “incredibly juicy, edge-to-edge rose pink beef encased in pastry boasting a flawlessly crispy base”. It is only available in her debut cookbook, Dinner.
In a post to Instagram on Tuesday, Maehashi requested journalists “please stop calling and emailing and texting and DM’ing me about the Erin Patterson case”.
It is of course upsetting to learn that one of my recipes – possibly the one I’ve spent more hours perfecting than any other – something I created to bring joy and happiness, is entangled in a tragic situation … Thank you for respecting my privacy.
On Monday, Patterson was found guilty of murdering three relatives and attempting to murder a fourth.
Welcome
Good morning and welcome to our live news blog. I’m Martin Farrer with some of the top overnight stories and then it’ll be Rafqa Touma to guide you through the day.
Australia is in negotiations with Ukraine about a security pact that could see the two countries firm up cooperation on intelligence sharing, according to briefing documents prepared for the foreign affairs minister, Penny Wong. More coming up.
One of the childcare operators at the centre of the abuse allegations in Victoria has told shareholders it plans to install CCTV in all of its sites and allow parents to provide preferences on who conducts nappy changes and toileting. More details shortly.
The health regulator has recommended sunscreen manufacturers add safeguards to products containing two ingredients amid concern about their efficacy. We have more coming up.
