Why should you care about Trump’s tariffs, even if you live in Australia?
Donald Trump’s renewed trade war with China is expected to cost Australia $27 billion in lost income from liquefied natural gas (LNG) and iron ore exports, according to federal government projections.
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On Monday afternoon’s episode of The Briefing, we sat down with economist Dr Susan Stone to unpack how Trump’s tariffs could impact every Australian.
As global demand softens, the government expects energy and mining export earnings to drop by $33 billion by 2026–27.
That could mean less tax revenue and pressure on government budgets already stretched by slow economic growth.
“The government has relied for a very long time on taxes and royalties paid by these mining companies,” Dr Stone said.
“If they can’t raise revenue from elsewhere… we may see higher taxes or cutbacks on public spending.”
While mining only makes up around two per cent of Australian employment, the knock-on effects could be significant.
“Transport, storage, hardware supply… all these sectors could feel the pressure,” she said.
The Albanese government has expressed concern, with Foreign Minister Penny Wong currently in Washington in a bid to avoid further fallout.
However, Dr Stone said that the chances of Australia getting an exemption “are very small”.
“These things affect everybody… It raises prices, increases uncertainty, and makes businesses stop investing. It really is something people need to care about.”
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