Aussie dollar, iron ore threatened as tariff war grows
The value of the Australian dollar can be hit as the US tariffs on goods from Australian trade partners affect local exporters.
US President Donald Trump announced a 25 percent tariff from Japan and Korea, Australia, the second and third largest export markets and the third and fourth largest two -way trade partners.
Isaac Gross, Monash University Economic Faculty Member Isaac Gross, is vulnerable for flow effects, although Australia has survived for now.
One of the main exports of Australia to Japan and South Korea is the iron ore used to make vehicles, one of the biggest exports to the United States.
However, if cars cannot be sold in the American market, this means less demand for the Australian iron ore and reduces prices.
Mining giants such as BHP and Rio Tinto will make less money in this and meaningful way and pay less corporate tax.
Dr Gross told AAP, “The main way affecting the Australian economy is a lower Australian dollar and less tax income,” he said.
“This will affect Australians as a whole… Especially in mining states, it will certainly harm the government’s budget line and reduce economic activity.”
South Korean or Japanese goods, which normally be exported to the USA, can be sent to Australia at a discounted price, and there may be some titles for Australian consumers.
For now, Mr. Trump swallowed uncertainty tariffs because of the irregular path used by measures.
“Many countries trying to make an agreement with the United States are very angry, Dav said, David Smith, Associate Professor of Sydney.
“They think the negotiations go in one direction, and then Trump makes a sudden announcement that leads him in another direction.”
Prime Minister Anthony Arbanese encountered increasing pressure to plan a face -to -face meeting with the US President and put pressure on total tariff exemption.
However, it is not clear whether this will work.
Japanese Prime Minister Shigeru Ishiba met Mr. Trump in February, but Until July, US President announced the increasing tariffs in the Nation of Asia and in the last interview, he called him the leader’s leader.
“I can see why the Prime Minister will seek a face -to -face meeting, but he does not have the same certainty he has in the past, Ass
“Now we are in a situation where the US is trying to negotiate 100 trade agreements at once – clearly beyond the capacity of American negotiators.
“Trump is very angry, blames other countries for Trump’s slowness of negotiations, and now goes out.”
Australian Associated Press is a beating heart of Australian news. AAP has been the only independent national Newswire of Australia and has been providing reliable and fast news content to the media industry, the government and the corporate sector for 85 years. We inform Australia.
