US President Donald Trump has threatened to impose 200% tariffs on one of Australia's largest exports to the United States, specifically targeting pharmaceuticals, which is Australia's third biggest export. The Australian government, led by Treasurer Jim Chalmers and Prime Minister Anthony Albanese, has expressed urgent concern and is seeking more details about the proposed tariffs. The tariffs are seen as a response to Australia's Pharmaceutical Benefits Scheme (PBS), which allows Australians to purchase medicines at lower prices, a practice opposed by US pharmaceutical companies. The Australian government has reiterated its commitment to maintaining the PBS and resisting pressure to weaken it in order to avoid tariffs. Industry insiders warn that the tariffs could severely impact Australia's $2 billion pharmaceutical sector and the broader economy. Critics have also faulted the Albanese government for not engaging effectively with the US administration to secure exemptions or mitigate the impact of the trade measures.