Research @ Citi Episode 43: Where to Find a Safe Harbor In Turbulent Times
Jul 23, 2025
Brent Robinson chats with Josh Williamson, Chief Economist for Australia and New Zealand, and Faraz Syed, Senior Economist at Citi. They dive into the challenges facing Australia and New Zealand amidst geopolitical tensions and potential U.S. tariffs. The discussion highlights Australia’s robust trade ties with China and its evolving monetary policy in response to inflation. They explore the burgeoning pension landscape, signaling Australia’s potential as a safe haven for investors during turbulent times, while examining the broader implications for global markets.
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Concerns Over Trump and China
- Trump’s administration and China are the top global concerns for Australia and New Zealand.
- Trump’s ability to unilaterally change trade rules creates unique uncertainty beyond previous shocks like Brexit.
Resilient Australia-China Trade
- Australia’s trade with China remains resilient due to competitive, low-cost commodity exports.
- Quantity of exports stay stable even as prices fluctuate with China's growth cycles.
US Tariff Focus Beyond Australia
- The US prioritizes tariffs with countries where it has trade deficits, not Australia which has a surplus.
- Australia is more focused on diversifying trade partnerships with India and Europe in response.