ABC News Daily Is Trump about to double Australia’s tariff?
Jul 30, 2025
In this discussion, Ian Verrender, ABC's Chief Business Correspondent, breaks down Trump's controversial trade policies. He explains the recent 15% tariff deal with the EU and its unexpected repercussions for global trade dynamics. Verrender delves into how these tariffs could disrupt Australian consumers and businesses, alongside potential impacts on public health due to proposed pharmaceutical tariffs. He also highlights the complexities of navigating this shifting landscape and what it means for Australia's future trade relationships, particularly with China.
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EU-US Trade Deal Impact
- Trump's deal with the EU imposes a 15% US tariff on most EU goods, half the originally threatened rate.
- Europe sees the agreement as unbalanced and damaging due to forced energy purchases from the US.
US Leverage in Trade Talks
- America's dominant economy and dollar status give it enormous leverage in trade negotiations.
- Many countries prefer capitulation over prolonged disputes to avoid economic harm.
Tariffs' Economic Contradictions
- Tariffs imposed by the US raise costs that American consumers actually pay.
- Reduced imports may shrink tariff revenue but could boost domestic production, which could take years to develop.