The US president has promised “Liberation Day” will be marked with a fresh round of taxes placed on goods imported into the United States.

In particular, the American pharmaceutical industry has long opposed the PBS, meaning medicine manufacturers could be targeted. Australia’s biosecurity controls, which prohibit the importation of uncooked beef, pork and poultry, and some fruits and vegetables from the US, could lead to measures aimed at local farmers.

New tariffs would come despite the free trade agreement between the two countries that has been in place for 20 years.

“I don’t want to pre-empt the decisions of the United States in the coming period,” the prime minister said.

“What I can say is that we’re prepared for all possibilities going forward.

“I repeat what I’ve said before, which is that tariffs are an act of economic self-harm on those who impose it. It increases the costs for buyers in the United States of America.”

Albanese later said he wouldn’t “engage in hypotheticals”.

“We’re still in discussions (with the US administration),” he said.

Australia has opened WTO cases against several other nations in the past, most recently against China over its tariffs on Australian goods like wine and barley, but also against Canada in 2018 over wine restrictions.

Earlier today, Opposition Leader Peter Dutton said he would be prepared to start a fight with Trump if required.

“If I needed to have a fight with Donald Trump or any other world leader, to advance our nation’s interest, I’d do it in a heartbeat,” he told Sky News this morning.

“I’ll put the Americans on notice and anyone else who seeks to act against our national interest.”

Both the government and opposition have ruled out placing reciprocal tariffs on US-made goods.