The Daily Aus The stock market crash, explained
Apr 7, 2025
Greg Jericho, Chief Economist at the Australia Institute, dives into the recent turmoil caused by US tariffs, which wiped over $100 billion from the Australian stock market. He discusses the psychological impact of economic fear on market behavior and the implications for everyday Australians. Jericho also explains trade deficits using a clever apples analogy and examines how such tariff policies may lead to global economic uncertainty. The conversation highlights the potential for recession and its effects on employment and consumer spending.
AI Snips
Chapters
Transcript
Episode notes
Global Tariffs
- Trump imposed tariffs on all nations, not just those with trade surpluses with the US.
- This makes American imports more expensive, potentially hurting the US economy.
Tariff Impact
- Tariffs are paid by the importing country, not the exporting one.
- Australian consumers won't directly feel the impact, but businesses exporting to the US might.
Market Crash Explanation
- Investors are worried about the tariffs' impact on the US and Chinese economies, particularly for Australian mining companies.
- This fear drives share selling and market decline.