U.S. Tariffs and the Australian Economy: Current Impacts and Future Outlook
The return of sweeping U.S. tariffs under President Donald Trump is posing new challenges to Australia’s economy and trade relations. In early 2025 the United States imposed a baseline 10% tariff on virtually all imports – including goods from Australia – and reintroduced steep duties on metals and automobiles. This marked a sharp departure from the free-trade norms that had defined U.S.-Australia commerce under the bilateral Free Trade Agreement. While Australia’s diversified export markets and resilient industries help cushion the direct impact (with the U.S. buying less than 5% of Australian exports), certain sectors like agriculture and metals are feeling immediate pain. Australian beef, wine, and other exporters face reduced competitiveness in the U.S.
April 24, 2025
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