US companies ‘emboldened’ by Trump’s tariff push

Despite reports Donald Trump is considering tariff exemptions, Aussie businesses are steeling themselves for the US trade “hit list”.

Exclusive: Australian businesses are bracing for worst-case US trade tariff “hit list” next week targeting meat, wine, pharmaceuticals, sugar and technology, despite reports the White House is considering exemptions.
The Trump administration is expected to unveil the first details of sweeping “reciprocal” import taxes on April 2, but plans to also announce sector-specific tariffs — expected to have a more direct impact on Australia — have potentially been delayed.

Despite this potential reprieve, Australian Industry Group chief Innes Willox said American companies have been “emboldened” by US President Donald Trump’s tariff push and are looking to re-prosecute trade arguments with Australia that were settled 20 years ago.

“Things are definitely headed in a negative trajectory at the moment,” he said.

“The embassy is working really hard, and the trade diplomats are working really hard, but at this stage we should be taking the view that nothing is off the table, as far as the Americans are concerned.
“We’re going to have to argue this case-by-case.”

Australian Industry Group chief Innes Willox said American companies have been “emboldened” by US President Donald Trump’s tariff push. Picture: Aaron Francis / The Australian

Mr Willox said there was “huge opposition” to Australia in the US from the pharmaceutical industry and agriculture, particularly meat and sugar, and increasingly other sectors like wine and technology.
There is a chance Australia would be spared in the first round of announcements next month following reports the White House is considering broader exemptions for countries that do not impose tariffs on the US and have a trade deficit — meaning they import more than they export — with America.

Even if a direct hit is avoided, Mr Willox said Australia’s economy would be hurt indirectly by a trade war between the US and China.

“You’ll have markets potentially being shut off one way for the other,” he said.

“So for any Australian company that uses componentry from China to export to the United States, that gets really complex and difficult.”

US President Donald Trump is due to announce a new wave of tariffs on April 2. Picture: Andrew Harnik/ Getty Images via AFP

Mr Willox said the “uncertainty” of where things would go next was the biggest challenge for industry.

“We’re probably one of the most trade exposed countries on Earth, so uncertainty and unpredictability around trade has big consequences for our economy,” he said.

Coalition foreign affairs spokesman David Coleman said the reports from the US about potential exemptions for numerous countries from the April 2 tariffs were “encouraging”.

“But the government has to get tariff exemptions for our steel and aluminium manufacturers, which it has failed to do so far,” he said.

“The Coalition did it in 2018, but Labor has failed.”

A federal government spokeswoman said the Trump administration had been “clear” imposing tariffs was “central to its economic agenda”.

“The Albanese Government will keep engaging with the Trump administration’s processes as we work to get the best outcome for Australian industries, jobs and consumers,” she said.

Originally published as US companies ‘emboldened’ by Trump’s tariff push