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NAB Morning Call
Weekend Edition - Where Australia sits in a Trumpian world
Feb 28, 2025
Dr. John Kunkel, a Senior Economics Advisor at the United States Studies Centre, dives into the economic repercussions of Trump's policies on Australia. He discusses how Australia's relationship with the U.S. is evolving under these unpredictable strategies. The conversation touches on the complexities of tariffs, the need for increased defense spending, and navigating trade dynamics with both the U.S. and China. Kunkel emphasizes that while challenges exist, Australia is strategically positioned to benefit from U.S. growth, despite the tumultuous global landscape.
31:26
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Quick takeaways
- Australia's complex trade relationship with the U.S. necessitates proactive engagement to navigate potential tariff impositions and economic friction.
- The growing pressure for increased defense spending highlights the need for Australia to reassess its spending priorities amidst global uncertainties.
Deep dives
Uncertainty as a Strategy
Donald Trump's presidency is marked by significant uncertainty, which he employs as a negotiation tactic. This unpredictability extends to his tariff plans, leading to skepticism in the market regarding their implementation. While he views tariffs as tools for exerting influence in trade negotiations, the long-term efficacy of this approach remains debatable. Furthermore, concerns over deindustrialization and competition from China shape his stance on tariffs, reflecting broader anxieties about America's economic future.
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