Trump’s tariff puts Australia in hard place between iron ore and China
If Australia wants to negotiate an exemption to US tariffs, it will need to convince the White House it will fight Chinese subsidies while not overly subsidising its own sectors.
As things stand, tariffs on Mexico and Canada (25 per cent on all Mexican imports to the US, 25 per cent on non-energy Canadian imports and 10 per cent on energy) and an additonal 10 per cent on China (on top of the 10 per cent imposed on February 4) are set to come into effect on Tuesday.
Steel and aluminium tariffs are set to go into effect the following week, with all existing exemptions and deals rescinded. Other tariffs are set to come on line at unspecified dates. Investigations, a precursor to tariff implementation, on copper and lumber have also been announced.
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Susan Stone is Credit Union SA Chair of Economics, University of South Australia
