Trump suggests possibility of doubling tariffs on Australia
US President Donald Trump has suggested that he may double the tariff on Australia and other countries, with a potential increase from 10 to 20 percent. This follows a 90-day pause in reciprocal tariffs set to end on August 1, affecting various nations including Australia.
During a press conference in Scotland, Trump hinted at the potential tariff increase, stating, “I would say it’ll be somewhere in the 15 to 20 per cent range,” suggesting that the final figure could fall within this range. He expressed a desire to be accommodating in his approach by offering “probably one of those two numbers.”
Throughout the pause period, the US has managed to secure agreements with key trading partners such as the UK, China, and the European Union. However, countries without a standing deal with the US are likely to face these new tariffs, as per Trump’s statements.
“We’re going to be setting a tariff for, essentially, the rest of the world,” Trump declared. He emphasized that countries seeking to engage in business with the US would need to adhere to these tariffs, explaining that it is unfeasible to negotiate 200 individual deals.
Despite the existence of a free trade agreement between Australia and the US, no specific deal has been agreed upon yet. Australian authorities have previously criticized the imposed US tariffs, labeling them as unwarranted and harmful to economic interests.
According to a spokesperson for Trade Minister Don Farrell, Australia’s stance on the matter remains firm: “Our position is unchanged – any tariffs on Australian goods are unjustified and an act of economic self-harm.” They added, “We will continue to engage at all levels to advocate for the removal of all tariffs, in line with our free trade agreement with the United States.”
The potential increase in tariffs proposed by Trump has raised concerns and highlights the ongoing trade tensions between the US and other nations, including Australia. As discussions evolve, it remains crucial for countries to navigate these challenges and work towards mutually beneficial trade relations.