ABC News Daily Will Trump’s China tariffs trash our economy?
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Nov 12, 2024 Dr. Susan Stone, the Credit Union SA Chair of Economics, discusses the potential fallout of Trump's return to the White House and the threat of a new trade war with China. She highlights the risks to Australia's economy, including rising inflation and interest rates. Drawing on historical trade conflicts, she explains how tariffs can lead to job losses and increased costs for consumers. Stone offers insights into the intricate global trade dynamics and their ramifications for both the U.S. and Australia, emphasizing the need for cautious optimism.
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Tariffs' Negative Impact
- Tariffs often hurt consumers and businesses by increasing costs.
- They can also lead to job losses, as seen in the 2017 U.S.-China trade war.
Impact on Australian Exports
- Australia's major exports to the U.S., like beef and gold, can be easily sold elsewhere.
- However, high-tech exports with larger U.S. market shares could be affected by tariffs.
Indirect Impact on Australia via China
- Trump's China tariffs could slow China's economy, impacting Australia's biggest trading partner.
- Slowdowns in Japan and Korea, also major Australian export markets, pose further risks.