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Man of Steel? What do the new Trump steel tariffs mean for Australia and the world?

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On his return to the White House, candidate Donald Trump campaigned on a 60 per cent tariff on all Chinese goods, and also flagged an across the board rise of 10 per cent for every other country.

Now reality has set in with President Trump imposing tariffs by executive order. Tariffs are, as British economist Joan Robinson once said, “Like putting rocks in your own harbour” but Trump believes they are politically popular, especially in blue-collar working-class areas that voted for him in record numbers, eschewing the Democrats.

But there have been surprises. President Trump almost as soon as he came to office for a second time, imposed a 25 per cent on US allies, trading partners and neighbours Canada and Mexico, but only 10 per cent for Trump’s usual target, China. Trump linked the tariff rises to illegal immigration and fentanyl (a drug thought to be smuggled from China and India to Canada and Mexico and then across the border into the United States). But after conversations with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, the tariffs were ‘paused’ after both Mexico and Canada agreed to increase resources to help stem the flow of illegal immigrants and drugs from their side of the border.

Similarly, in the case of Colombia, illegal Colombian immigrants were flown back to Bogota from the USA, and the tariffs on Colombian coffee were also rescinded.

Steel tariffs

Now, steel and aluminium have been flagged by President Trump, as he flew on Air Force One to the Superbowl after a round of golf with Tiger Woods. Trump announced 25 per cent on steel, and aluminium across the board to attempt to return the US steel industry to its glory days. With steel country, in states like Pennsylvania being crucial to Trump’s electoral revival no wonder steel is a focus for the Trump 2.0 administration.

This caused shockwaves around the world, including Australia that exports steel and aluminium to the USA. However, it shouldn’t be much of a surprise given Trump clearly campaigned on tariffs for key manufacturing sectors and US industries like steel that he wanted to ‘make great again’.

Whilst most of Australia exports go to China and the rest of Asia now, the USA still an important economic partner, in investment at least as much as trade. And of course, we Australia has a strong alliance with the USA, AUKUS and the Australia USA free trade agreement (AUSFTA) which was meant to be ‘celebrating’ its 20th anniversary this year.

Australian exemption

But will Australia receive an exemption? In the last Trump administration, they were granted an exemption on 25 per cent steel tariffs and 10 per cent on aluminium. We got an exemption last time this happened, can we get an exemption again?

One reason for the exemption is that Australian steel giant BlueScope actually has much of its production in the USA. In fact, it’s share price rose on the back of the Trump announcement. Other players like Rio Tinto also has a North American presence. But regardless, the impact on iron ore exporters selling to China would be badly impacted by a global tariff on steel. Similarly, aluminium exporters like Alcoa, would have to divert its exports between Australia and North America depending on when and where the tariffs are imposed.

Last time the Australian Ambassador was Joe Hockey, this time it’s Kevin Rudd. Rudd’s knowledge of China is certainly useful around Washington, but will he be able facilitate concessions from an emboldened and confident Trump administration? Or can Prime Minister Albanese do so in direct discussions? Let’s hope so for the sake of the American and Australian worker, consumer, and manufacturing sectors.

 *Tim Harcourt is Industry Professor and Chief Economist at IPPG, at the University of Technology Sydney (UTS) and host of The Airport Economist channel on Ticker News:

 https://tickernews.co/shows/airporteconomist/

Tim is also a former Chief Economist of the Australian Trade Commission (Austrade).

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Trump orders Pentagon to resume nuclear testing immediately

Trump orders Pentagon to resume nuclear testing, raising concerns over arms race and global safety

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Trump orders Pentagon to resume nuclear testing, raising concerns over arms race and global safety

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In Short:
– Trump ordered the Pentagon to resume nuclear testing, risking global tensions and retaliation from other nations.
– Proliferation concerns are rising as nuclear states modernise arsenals and the New START Treaty nears expiration.
US President Donald Trump has ordered the Pentagon to resume nuclear weapons testing immediately, aiming to align with testing programs from other countries according to the conversation.Resuming explosive nuclear tests would likely trigger retaliatory responses from nuclear-armed nations like Russia and China, worsening the arms race and increasing global risks.

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The potential for worldwide radioactive fallout remains high, even for underground tests. The Comprehensive Nuclear Test Ban Treaty, signed by 187 states, prohibits such testing, yet the US remains a signatory without ratification, bound not to violate the treaty’s intent.

Nuclear weapon testing, once crucial for understanding weapon effects and military planning, has diminished. Since World War II, nuclear tests have largely focused on developing new designs. Significant environmental and health concerns led to a moratorium on atmospheric testing in the early 1960s and the Partial Test Ban Treaty in 1963.

Many countries, including the US, stopped explosive testing in the 1990s. Technological advancements allowed nations to develop nuclear weapons without the need for actual explosions.

Proliferation Risks

Nuclear proliferation continues, with all nine nuclear-armed states investing heavily in modernising their arsenals. This raises concerns about lowered thresholds for using such weapons.

Recent conflicts involving nuclear threats have escalated, and the number of nuclear weapons operationally available has begun to rise again. Russia has tested advanced nuclear weapons, while China is rapidly expanding its military capabilities.

The New START Treaty, which confines the nuclear capabilities of the US and Russia, is set to expire soon, with no successor treaty negotiations underway.

The Doomsday Clock has moved closer to midnight this year, highlighting the heightened dangers facing the world today.

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US–China trade talks are a handshake, not a deal

Trump and Xi unofficially extend tariff truce, with US concessions and Chinese commitments on soybeans, fentanyl, and rare earths.

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Trump and Xi unofficially extend tariff truce, with US concessions and Chinese commitments on soybeans, fentanyl, and rare earths.


Presidents Trump and Xi extend their tariff truce in an informal meeting, with US cuts and Chinese promises on soybeans, fentanyl, and rare earths.

Steve Gopalan from SkandaFX cautions this is unofficial and deeper issues between the two super powers remain.

#USChina #TradeTruce #Tariffs #GlobalMarkets #Soybeans #RareEarths #UnofficialDeal #TickerNews


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Markets cautious as rate cut hopes fade

Central banks ease rate cut hopes amid inflation and wobbling tech stocks; markets adjust to Fed’s new stance.

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Central banks ease rate cut hopes amid inflation and wobbling tech stocks; markets adjust to Fed’s new stance.


Central banks pull back on rate cut expectations as tech stocks wobble and inflation pressures persist. Markets adjust cautiously to the Fed’s new tone.

#Markets #Fed #InterestRates #Inflation #TechStocks #CapitalMarkets #TickerNews #Economy #FinancialUpdate


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