Federal election 2025: US President Donald Trump to impose tariffs of up to 20 per cent

Hard-hit consumers are being warned of price hits from a global trade war ignited by Donald Trump imposing 20 per cent tariffs.

A Trump tariff tsunami risks hiking prices for hard-hit Australian consumers, experts warn, as they brace for across-the-board imposts of up to 20 per cent.

Ahead of US President Donald Trump’s “Liberation Day” hit to be unveiled on Thursday morning, experts are alarmed about a global trade war slashing driving up prices for Australian business and consumers by unleashing retaliatory tariffs.

This would be the fallout from added costs across global supply chains, with the impact to be magnified by any downturn in demand for Australian products from our biggest trading partner, China.

It is understood Trade Minister Don Farrell has briefed trade groups to expect the US to impose tariffs of up to 20 per cent on all nations, despite persistent lobbying from Australia.

It is not known whether these tariffs will add to a 25 per cent US impost on steel and aluminium imposed in March, taking the charge to up to 45 per cent.

Australia sells $30bn worth of product into the US but $230bn into China, illustrating the risk of a trade war dampening demand.

Prime Minister Anthony Albanese on Wednesday reiterated that Australia would not cave to the White House’s latest trade demands and said his government was in “daily discussions” with Washington.

Opposition Leader Peter Dutton talked tough about standing up to America, saying: “If I need to have a fight with Donald Trump or any other world leader … I will do it in a heartbeat.”

President Donald Trump speaks in the East Room of the White House. Picture: AP

Warning of the impact on consumers and business, Australian Industry Group chief executive Innes Willox said: “The expected tsunami of tariffs to be announced or threatened will spark retaliation, imposing barriers on well-known trading relationships and driving up costs for businesses and consumers.

“This is not good news for Australia, where we rely on trade for our economic prosperity more than any other economy on earth, with one in four jobs dependent on trade.”

Independent economist Saul Eslake said stockmarkets had already slumped

Business Council of Australia chief executive Bran Black warned increased tariffs on China risked Australian job security and threatened firms’ viability by cutting demand for our products.

He urged Australian businesses to remain calm, advising the government to adopt a “very considered, methodical and non-panicked approach” to dealing with the Trump administration.

“We’re seeing a global environment in which there is swirling uncertainty everywhere. What this emphasises to me is that we should focus on controlling what we can control and making our investment environment as competitive as possible,” he said.

“ … That means looking very seriously at our industrial relations settings, our tax settings, how long it takes to get approvals, whether or not we should be focusing on deregulation, which we would argue we strongly should be.

Senator Don Farrell has fired a warning shot about Trump and tariffs. Picture: NewsWire / Martin Ollman

“It’s all of those points that collectively add up to whether or not Australia is a good place to invest and do business. We should be focused on driving those. That should be the number one thing that we can do to best prepare ourselves for the uncertainty of the world in which we live.”

It is understood Senator Farrell briefed about 100 trading representatives, telling them the US tariffs’ direct impact would be limited because, for example, every imported $10 wine bottle would rise to $12.

But he told the briefing he had spoken to all major trading partners in the past fortnight to look at all options to the United States, and would open talks with the European Union about resurrecting a free-trade agreement.

Originally published as Federal election 2025: US President Donald Trump to impose tariffs of up to 20 per cent