Australian health care stocks fell sharply on Friday after Donald Trump announced a 100 per cent tariff on branded and patented pharmaceutical imports into the United States from 1 October, unless companies are building new US manufacturing plants.
The Health Care index (XHJ) dropped 1.42%, with CSL (ASX:CSL) sliding 1.9% to $194.23, Cochlear (ASX:COH) down 1.84% at $280, Pro Medicus (ASX:PME) off 2.38% at $301.77, and Telix Pharmaceuticals (ASX:TLX) down 3.45% to $14.85.
CSL reassures investors
CSL, which exports large volumes of plasma and blood products to the US, said it was “actively monitoring” developments but did not expect a material impact given its extensive American manufacturing base. The company employs around 19,000 staff in the US, with facilities spanning plasma collection centres, a plasma processing hub in Illinois and a vaccines plant in North Carolina.
“In addition to CSL’s Australian facilities, we have a very significant United States manufacturing footprint … as per previous market guidance, we do not expect any material impact from these tariffs,” the company said in a statement.
Political fallout
Health Minister Mark Butler stressed that Australia’s Pharmaceutical Benefits Scheme would be “protected at all costs”, while the Coalition branded the move “deeply concerning” for exporters. Opposition health spokeswoman Anne Ruston and trade spokesman Kevin Hogan said the tariff “puts this critical trade at risk, as well as the jobs thousands of people it employs”.
The US imported US$233bn worth of pharmaceutical products in 2024, according to Census Bureau data. Australia’s shipments to the US are valued at more than A$2bn annually, with CSL accounting for the bulk.
