PM offers tariff warning as US expands levies on allies
The Prime Minister emphasized that Donald Trump increases the taxes in exports from Australia’s most important trade partners, punishing the country imposing them.
The US President announced a 25 percent tariff from Australia, Japan and Korea, the second and third largest export markets and the third and fourth first two -way trade partners.
Australia has not received a tariff letter, that is, most of the US exports to the United States are initially subject to 10 percent, while steel and aluminum are 50 percent of tariffs.
Prime Minister Anthony continued high tariffs in Albania in Japan, and Korea would not increase domestic prices because the federal government did not increase tariffs.
On Tuesday, he told journalists in Tasmania.
“The US has made this decision.”
He said the government will continue to attempt to negotiate total exemption from US tariffs, even though no country in the world does this.
However, the opposition leader Sussan Ley, Prime Minister Mr. Trump, if he could not meet face -to -face, he said it would be difficult for these discussions to happen.
Melbourne told journalists, “Today I note the changes in some tariffs in some countries – I care about Australia,” he said.
“I urge the Prime Minister to perform this meeting, to do everything possible to establish this relationship.”
Although tariffs are not likely to have a significant direct impact on Australia, their uncertainty can damage the living standards around the world.
Without this, modeling from the Productivity Commission found that Australia could get some benefits from the US tariffs.
However, the independent research and advisory body of the federal government suggested that Australia’s free trade agreements, reducing their own tariffs and working towards open markets.
Any retaliation tariffs can potentially deteriorate the uncertainty that the commission warns that it will bring “serious consequences ..
In 2025, the economic uncertainty in Australia and the world has reached the highest level since Covid-19 Pandemi.
The speed, frequency and changing scope of Mr. Trump’s tariffs created an environment in which world trade can be transformed at any time and without warning, which led to the uncertainty that could slow down household consumption and investment.
Australia, one of the scenarios modeled by the Commission, – like real activity – faced only 10 percent basic tariff of Australia’s exports, while the goods of other countries were hit at higher rates in the case of a “day of liberation”.
Since the Australian elements were affected by a lower rate, it would be relatively cheaper, ie American consumers would shift the demand to Australian property.
The US demand for imports of other countries will reduce the cost of import inputs used in Australian production by lowering their prices.
The US tariffs would also cause capital to flow from the United States and high -scheduled countries and benefit other economies such as Australia.
This means that in addition to Mr. Trump’s taxes on steel and aluminum, the salvation day tariffs may lead to a 0.37 percent increase in the real gross domestic product of Australia and a 30.9 percent increase in the US demand for Australia export.
Although it is unclear whether Australia can negotiate a tariff exemption, the government can remove its own “discomfort” taxes more and take things to their own hands.
He lifted about 500 of these tariffs, which brought high costs to businesses and earned very little income, but the commission described another 315 that could be removed urgently.
“Australia’s best free and fair trade continues to defend the best free and fair trade – and this is exactly what we do.”
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