Joe Hildebrand: Real concern of Donald Trump’s tariffs is the impact on China and India

Donald Trump may have slugged Australia with a 10 per cent tariff, but there is a bigger global threat to us, writes Joe Hildebrand.

In the shadow of the Sydney Opera House 200 sleeping bags were laid out on the ground this morning.

They were placed there by Vinnies to represent the hundreds of people who sleep rough every night — a cruel reminder of the human toll of the cost-of-living crisis.

But the real scale of the problem is far less visible.

Of the hundreds of thousands of Australians Vinnies has helped in recent years, around a third are people who have never asked for help before.

Many Australians are being pushed to the limit by the cost of living crisis. Picture: Max Mason-Hubers

In other words ordinary working Australians who have been pushed to the limit by skyrocketing costs in housing, power and grocery bills.

Fate has dictated that Vinnies is launching its biggest fundraising campaign, the CEO Sleepout, in the first week of an election campaign in which cost of living is first, second and third priority.

And it is a timely that while the headline figures for the economy may have turned a corner — inflation coming down, growth going up and an interest rate cut with more on the way — the impact of this is yet to be felt by many Australians who are still hard up against it.

Donald Trump after delivering his Liberation Day speech. Picture: AFP

And then along comes Donald Trump, who has become the third candidate in this election campaign.

Trump’s “Liberation Day” announcement has slapped a 10 per cent tariff on all Australian exports to the US.

But the real impact isn’t from Australian-US trade — which is relatively small — but by the impact of even higher tariffs being whacked on global giants like China and India.

This could crunch growth in those countries, which are much bigger markets for Australia, and this could smash our economy just as it is starting to stabilise.

It’s undoubtedly bad news bears but what does it mean for Peter Dutton and Anthony Albanese?

Normally blame for an economic shock would be laid at the feet of the government of the day, but this is so obviously a clear external threat that it could have the opposite effect.

In times of war citizens tend to rally around their leader and trade wars are no different.

Meanwhile Peter Dutton is still struggling to distance himself from Donald Trump and the Trump-esque style that seemed so popular with his support base just a few short months ago.

Trump might be fun to watch from afar but, as the empty sleeping bags show, it’s the problems on our doorstep that will always matter the most.

• To support Vinnies’ help for struggling Australians visit www.ceosleepout.org.au