Lower tariff could give Aussie exports edge over rivals
Australian exporters can earn money in the US market as their major competitors are slapped with higher tariffs.
After President Donald Trump threatened a series of increasing tariffs during the weekend, some of the most important trade partners of America shook their trust.
As of August 1, the goods coming from Brazil would be hit by a 50 percent tariff-10 percent tax, 30 percent of the European Union, 20 percent of 20 percent of a hundreds of 20 percent.
However, Australia does not yet draw attention to a new tariff ratio, so most products sent to the United States start at 10 percent.
“In a sense, it will provide us with an unfair game advantage, Mon Isaac Gross AAP, a lecturer of Monash University, said.
Australia and Brazil are two of the largest beef exporters of the United States, so if there is a higher tariff of the South American country’s exports, they will be more expensive for American consumers who can push and increase trade to Australian goods.
Similarly, Australia compete with the European Union for the export of wine to the United States and an increasing tax on alcohol from Italy or France can increase its American demand.
However, Australian exports will be less competitive than US products that grow from home, which is still not subject to a tariff.
Dr Gross said, “The 10 percent tariff will harm us, but if the 50 percent or 30 percent tariff on other companies hurts them, we can be after all,” he said.
However, all of this depends on whether the US President has applied tariffs in accordance with the announcements.
The EU continues to print for more tariff negotiations, and it is unclear that Australia will not survive a letter from the US President.
Mr. Trump became increasingly undecided with his tariffs, and when they threatened the act of retaliation after the reaction of the other nations, he walked back more than once.
Dr Gross said that this uncertainty has been dragged into international trade with the US and can delay the long -term investment.
Treasurer Jim Chalmers said that there is no change in tariffs in the US Australian goods and that the government continues to interact with Mr. Trump’s administration.
“Every week we bring new developments, new uncertainties and see more at the weekend,” Treasurer said on Monday.
“We will continue our way with the results of such announcements from time to time.”
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