Australia eyes more US exports as Trump holds tariffs at 10%
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Trade Minister Don Farrell says Australia’s negotiations with the US helped it to retain the baseline tariff rate of 10 per cent.
PHOTO: REUTERS
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SYDNEY/WELLINGTON - Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said on Aug 1, after US President Donald Trump kept the minimum tariff rate of 10 per cent for Australia.
Mr Trump set higher import duties of 10 per cent to 41 per cent starting in seven days for 69 trading partners, including a 35 per cent duty on many goods from Canada, 50 per cent for Brazil and 15 per cent for Australia’s South Pacific neighbour New Zealand.
“What this decision means in conjunction with all of the other changes to other countries is that Australian products are now more competitive into the American market,” Mr Farrell told reporters in Adelaide.
“We will assist all of our exporters in ensuring we take advantage of this situation and increase the volume of exports.”
New Zealand Trade Minister Todd McClay said he was hoping to have talks with his US counterparts.
“I am seeking an urgent call with the US Trade Representative to make New Zealand’s position clear: This increase risks harming exporters and consumers of both countries,” he said in a statement.
US firms now face an average tariff of 0.8 per cent when exporting to New Zealand, Mr McClay said.
New Zealand exports about NZ$9 billion (S$6.8 billion) of goods each year to the US, its second-largest market after China, meaning the increase would be “considerable” for exporters, he added.
Trade talks
Mr Trump’s decision to put Australia among countries facing the lowest tariff levels will be a relief for Prime Minister Anthony Albanese, after the opposition criticised him for not meeting the US President in person.
But Mr Farrell said Australia’s negotiations helped it to retain the baseline tariff rate.
“This is a vindication for the Albanese government, and particularly the Prime Minister, in the cool and calm way we have conducted diplomacy with the United States,” he said.
Australia last week eased restrictions on beef imports from the US, potentially smoothing trade talks with Mr Trump, although Mr Albanese said the decision had long been considered and was not related to any trade negotiations. REUTERS
