Donald Trump is set to announce significant new tariffs, dubbed his self-proclaimed “Liberation Day,” targeting a host of nations including Australia, as well as the European Union. This move is part of his ongoing campaign against what he sees as unfair trade practices and discriminatory taxation on American exports. Trump has previously implemented tariffs on steel and aluminium, which affected Australia despite extensive lobbying efforts from the country.
The US Trade Representative (USTR) has identified Australia among 20 other nations that may face hefty tariffs starting on April 2, with an emphasis on addressing trade deficits. The countries listed, which include Canada, China, and the UK, account for a substantial portion of US goods trade, approximately 88%. Ambassador Jamieson Greer has stated that Trump’s administration is dedicated to combating unfair foreign trade barriers to protect American businesses and workers.
Trump’s grievances with Australia’s trade policies include strict regulations that ban imports of certain uncooked meats, along with limitations on other products such as apples and pears. Additionally, the recently enforced bargaining code affecting the pharmaceutical sector has drawn scrutiny from the US. Prime Minister Anthony Albanese has asserted that Australia will not negotiate in response to these demands.
The looming tariffs have sparked concerns within Australia, with the potential to impact various sectors. The USTR’s detailed report highlighted issues with the importation of cheese, sugar, seafood, and several other commodities, signalling broader frustrations over existing trade barriers.
As Trump prepares to reveal the specifics of these tariffs, the Australian economy, along with those of the other affected nations, braces for the fallout. Whether the tariffs will be imposed on specific products or as blanket measures remains unclear, leaving significant uncertainty hanging over international trade relations.