Australia’s chances of escaping America’s global steel and aluminium tariffs appear all but extinguished, with the US president reconfirming his commitment to a comprehensive tariff regime he argues will be “the greatest thing we’ve ever done as a country”.
“We’re going to take in hundreds of billions of dollars in tariffs, and we’re going to become so rich, you’re not going to know where to spend all that money,” Donald Trump told reporters on board Air Force One flying from Florida to Washington DC.
“We’re basically going to take back the money – a lot of the money that we’ve given away over many decades.”
I think he does, he just expects that in 4 years time the US will be booming and the bitter pill at their inception will have passed
He probably should look at the effect of China’s tariffs and trade disputes on Australia.
he only look what he did the first time with soybeans and china. China found a new source of soybeans elsewhere, american soybean farmers never recovered.
That’s the other galling side of this. It’s just so fucking dumb even as a way to “do” capitalism. Yes, theoretically one of the options in the face of tariffs is that an exporter can choose to eat the cost and both the importer and its country “win,” but that presupposes a market with few buyers and exporters with big enough profit margins that they can eat the cost. In reality of course, the exporter will instantly seek out other customers and if none can be found, they might eat some of the costs, but also pivoting their production to (previously) less profitable goods now makes much more sense because of the artificial barrier, and in the extreme case simply shutting down and liquidating assets is better than losing money on every sale. Then of course there are retaliatory tariffs, which work much better than the initial ones because they are targeted and leave the remainder of the global market available to country levying them.