Part 5/10:
The U.S. trade stance remains uncertain, and Phillips emphasizes that negotiations are highly unpredictable at this stage. The U.S. is characterized as a "negotiator" who aims to maximize advantage; therefore, Australian exporters should prepare for the possibility of further tariff hikes.
The Political and Policy Landscape
The negotiations are complicated by underlying policy issues such as the Pharmaceutical Benefits Scheme (PBS) and drug pricing. U.S. pharmaceutical companies have reportedly pushed hard against certain concessions that the Australian government might be reluctant to provide. The government maintains that any discussions around the PBS are unrelated to tariff negotiations, but skepticism remains about this stance.