The US is Australia’s biggest export market for pharmaceuticals. If the tariffs go ahead, manufacturing could suffer.

Australia is at risk of a $27 billion collapse in income from two of its biggest exports as the US-China trade war chokes demand.

Australia is facing a minimum 10 per cent tariff and is expected to keep exporting a range of goods, especially those that are hard to replace. Tariffs are likely to disrupt global supply chains and reduce confidence, leading to less spending, particularly investment.