07 Feb Trump’s tariffs and the supply chain
United States President Donald Trump’s announcement of tariffs on the nation’s three biggest trade partners, Canada, Mexico and China, has raised global market concerns.
The three tariffs, consisting of 25% tariffs on Mexican and Canadian imports and an additional 10% on China, have momentarily been paused for a month while negotiations concerning border control measures continue, however this has not dampened speculation on the consequences of the impositions of these tariffs.
Whilst Australia may not be directly targeted, it may still weather the effects due to its close international trade ties. From a short-term perspective, while the immediate impact is likely to be relatively small, there is potential for disruption via the global supply chains that affect Australian businesses, from electronics like iPhones to point-of-sale systems used by cafes and small businesses. Over the longer-term if the tariffs do result in significant economic downturns for China, Australia may face a substantial decline in demand for its exports.
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