While the Case Studies Database on this site focusses on the period up to December 2024, the Economic Statecraft and Weaponised Trade project has a broader focus. This is the second of a two-part series by Dr Chris Khatouki, following on from his previous post on Trump’s Tariffs on Australia as at November 2025.

Non Tariff Measures:

In addition to existing tariffs, the U.S. has publicly flagged that certain Australian legislation and regulatory frameworks are under investigation as potential non-tariff barriers (NTBs) or unfair practices.

Pharmaceuticals

In early 2025, the Pharmaceutical Research and Manufacturers of America (PhRMA) submitted to the U.S. government that Australia’s current Pharmaceutical Benefits Scheme (PBS) and related pricing rules are “egregious and discriminatory”, constituting an NTB because they undervalue medical innovation and pricing negotiation outcomes for U.S. exporters. Relatedly, President Trump has publicly flagged tariffs of 200%, or even up to 250%, on pharmaceuticals imported into the U.S. in an effort to boost domestic manufacturing and reduce reliance on foreign pharmaceutical supply chains.

Technology and Media

In early 2025, major US tech companies under the Computer & Communications Industry Association (CCIA) – including Meta Platforms, Google LLC, Apple Inc., Amazon, and X Corp – lodged a formal complaint with U.S. trade authorities regarding Australian regulation of digital platforms. Central to the complaint is the Australian Treasury Laws Amendment Act 2021 (News Media and Digital Platforms Mandatory Bargaining Code), which requires firms to pay for Australian news content, provide equivalent value to Australian publishers, or comply with local content and expenditure mandates.

The CCIA argues that this constitutes a “coercive and discriminatory tax” on the U.S. based firms as per the AUSFTA. Relatedly, on 2 April 2025, the Office of the US Trade Representative (USTR) released a report identifying foreign policies that were allegedly harming the US economy. Australia’s News Media Bargaining Code was mentioned prominently, with the USTR stating it would continue to monitor the implementation of the policy closely.

Furthermore, the Australian federal government has announced plans to impose local content quotas on video streaming services, such as Netflix, Disney+ and Amazon Prime, as part of its national cultural policy “Revive” released in 2023. These quotas were also highlighted in the USTR report as an issue being monitored to ensure Australia complies with its FTA obligations.

Impacts and Reponses:

Australian pharmaceutical exports to the US have been valued at AUD $2.1 billion in recent years, meaning any U.S. measures could have significant effects. Yet, despite rising U.S. trade objections, Australian officials have remained firm. Federal Health Minister Mark Butler said Australia’s “position is absolutely rock solid. We will not be negotiating,” while Federal Treasurer Jim Chalmers affirmed, “We’re not willing to compromise the PBS. We’re not willing to negotiate or trade away what is a really important feature of the health system.”

On the technology and digital media front, the Australian government also appears to have maintained its position. Initially, the introduction of local content quotas, expected from July 2024, seemed to be quietly shelved due to concerns regarding their interaction with FTA obligations. However, the government has since confirmed that local content requirements will proceed, with legislation to enter Parliament in late-2025. The government has not yet outlined how this legislation will be reconciled with its AUSFTA commitments.

Australia has also continued engagement with the US government on the introduction of its media bargaining codes. Referring to the CCIA’s lobbying efforts, Treasurer Chalmers commented, “It’s self-evident they’re very close with the US administration. Our focus and our job is to make our case in the US, as we have been doing.”

Furthermore, the federal government is progressing legislation intended to restrict minors’ access to social media platforms. Major US-based platforms such as YouTube have refused to reveal whether they are actively lobbying the Trump administration to treat the proposed measures as NTBs. The Australian Competition & Consumer Commission (ACCC) is also taking legal action against a major U.S. tech firm, Microsoft Corporation, over alleged misleading conduct. These actions signal stronger enforcement of digital platform regulation despite rising pressure emanating from U.S. authorities.

Reference List

Australian Bureau of Statistics. 2025. “Australia’s trade with the United States of America”. June 5. Available at: https://www.abs.gov.au/articles/australias-trade-united-states-america

Australian Competition & Consumer Commission. 2025. “Microsoft in court for allegedly misleading millions of Australians over Microsoft 365 subscriptions”. Commonwealth of Australia. October 27. Available at: https://www.accc.gov.au/media-release/microsoft-in-court-for-allegedly-misleading-millions-of-australians-over-microsoft-365-subscriptions

Butler, M., and Sara, S. 2025. “Radio Interview with Minister Butler, ABC Radion National – 21 July 2025”. Department of Health, Disability and Ageing. July 21. Available at: https://www.health.gov.au/ministers/the-hon-mark-butler-mp/media/radio-interview-with-minister-butler-abc-radio-national-21-july-2025?language=en

Chalmers, J. and Cannane, S. 2025. “Interview with Steve Cannane, RN Breakfast, ABC Radio”. Australian Treasury. July 9. Available at: https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/transcripts/interview-steve-cannane-rn-breakfast-abc-radio-0#:~:text=We’re%20not%20willing%20to,out%20of%20the%20US%20overnight.

Commonwealth of Australia. 2023. “Revive: A Place for Every Story, A Story for Every Place”. Available at:  https://www.arts.gov.au/sites/default/files/documents/national-culturalpolicy-8february2023.pdf

Dalzell, S., Dziedzic, S., T, Crowley. 2025. “Australia defends Pharmaceutical Benefits Scheme as US companies urge Trump to impose reciprocal tariffs”, ABC News. March 19. Available at: https://www.abc.net.au/news/2025-03-19/australia-defends-pbs-us-pharma-urges-reciprocal-tariffs/105072750

eSafety Commissioner. 2025. “Social Media Age Restrictions”. Commonwealth of Australia. November 11. Available at: https://www.esafety.gov.au/about-us/industry-regulation/social-media-age-restrictions

Evans, J. 2025. “Streaming services to be made to produce Australian content”. ABC News. November 4. Available at: https://www.abc.net.au/news/2025-11-04/streaming-services-to-be-made-to-produce-australian-content/105970910

Lowrey, T. and Long, C. 2024. “Federal government quietly shelves plans for local content requirements”, ABC News. November 6. Available at: https://www.abc.net.au/news/2024-11-06/government-quietly-shelves-plans-for-local-content-requirements/104564654

Reuters. 2025. “Australia ‘urgently seeking’ details on Trump drug tariff plan”. July 9. Available at: https://www.reuters.com/business/healthcare-pharmaceuticals/australia-urgently-seeking-details-trump-drug-tariff-plan-2025-07-09/

Reuters. 2025. “Australia worried by Trump threat to raise U.S. pharma tariffs to 250%”. August 7. Available at: https://www.reuters.com/sustainability/boards-policy-regulation/australia-worried-by-trump-threat-raise-us-pharma-tariffs-250-2025-08-07/

Ryan, B. 2025. “US tech giants lobby Trump to tackle Australian social media rules”. ABC News. March 21. Available at: https://www.abc.net.au/news/2025-03-21/us-tech-x-meta-facebook-twitter-trump-australia-trade-review/105079442

Taylor, J. 2025. “Google won’t reveal if it is lobbying Trump about YouTube’s inclusion in Australia’s under-16s ban”. The Guardian. October 13. Available at: https://www.theguardian.com/technology/2025/oct/13/google-wont-reveal-if-it-is-lobbying-trump-about-youtubes-inclusion-in-australias-under-16s-ban United States Trade Representative. 2025. “2025 National Trade Estimate Report on Foreign Trade Barriers of the President of the United States on the Trade Agreements Program”. Available at: https://ustr.gov/sites/default/files/files/Press/Reports/2025NTE.pdf