What you need to know about Donald Trump’s tariffs, impact on Australia

There were more than a few surprises in Donald Trump’s “Liberation Day” speech. Here’s what you need to know.

Donald Trump has just held a press conference to announce his “Liberation Day” tariffs.

There were more than a few surprises.

Here’s what you need to know:

Australia got off comparatively easy

Despite the sometimes heated rhetoric, Australia is only being hit with 10 per cent tariffs on goods exported into the United States. This is Trump’s baseline minimum rate, which means that despite the hit to our exports Aussie products will be more attractive at the American checkout.

■ Revealed: How tariffs will affect Australia

Trump has a beef over beef

Australia’s ban on raw beef imports – whether because of quarantine concerns, protectionism for our own farmers, or both – is a real point of contention for the US president.

“Australia bans – and they’re wonderful people and wonderful everything, but they ban American beef,” he said.

But, “they won’t take any of our beef. They don’t want it because they don’t want it to affect their farmers and you know, I don’t blame them but they’re doing the same thing right now starting at midnight tonight, I would say.”

China is absolutely copping it

In a sign that the Trump administration is serious about taking on Beijing as part of the White House’s pivot to the Asia-Pacific region, Chinese goods are being whacked with 34 per cent reciprocal tariffs.

There’s not much room to move

In private briefings, White House officials have reportedly said there is little appetite for “haggling” over tariffs, which means that even if Ambassador Kevin Rudd starts playing golf with the president, we’ve probably gotten as good as we’re going to get.

President Donald Trump. Picture: AP Photo/Mark Schiefelbein

Allies are also in the frame

Some of the hardest hit nations are countries that would be considered friends of the US, but whom Trump believes has taken advantage of America by imposing high tariffs on American goods.

“The European Union charges us more than 10 per cent tariffs and they have 20 per cent VATs, much, much higher,” Trump said.

“India charged 75 per cent, perhaps worst of all are the non-monetary restrictions imposed by South Korea, Japan and very many other nations as a result of these colossal barriers.

“Eighty-one per cent of the cars in South Korea are made in South Korea. Ninety-four per cent of the cars in Japan are made in Japan.”

American manufacturing may not be the big winners here

While Trump has signalled the tariffs as a way to bring back American manufacturing jobs that were lost to nations like China, the National Association of Manufacturers warned that the hits to imports like component parts would make life more difficult for its members.

This is nothing new

American presidents and politicians have long flirted with tariffs as a way to enrich America. At the start of the 20th century William McKinley used tariffs to help rebuild America’s treasury after a financial panic the previous decade.

More recently Republican presidential candidate Pat Buchanan made the case for “economic nationalism”, but lost out to the free trade, Ronald Reagan wing of the party.

Originally published as What you need to know about Donald Trump’s tariffs, impact on Australia