Australia dodges latest Trump tariff hikes as trade minister heralds ‘vindication’ for Albanese’s approach | Australian foreign policy

Australian items imported into the US will proceed to draw the baseline 10% tariff, with Australia dodging any tariff enhance within the newest spherical of Donald Trump’s world commerce conflict.On Thursday evening US time – Friday morning in Australia – Trump issued an government order confirming new tariff offers for a number of buying and selling companions, in addition to revised tariffs for a lot of different international locations.Australia is just not talked about within the order, which acknowledged that any international locations not on the brand new checklist would stay at a ten% tariff. Guardian Australia understands the US authorities confirmed to the Australian embassy in Washington DC that the ten% tariff fee would stay in place.“The White Home has confirmed that no nation has reciprocal tariffs decrease than Australia,” a spokesperson for Australia’s minister for commerce, Don Farrell, mentioned on Friday morning.Trump’s so-called “reciprocal tariffs” are separate to the industry-specific tariffs of fifty% imposed by the Trump administration on Australian metal, aluminium and copper imports: these tariffs additionally stay in place.Join: AU Breaking Information electronic mail“Whereas we stay in the very best place below the USA’ new tariff regime, we’ll proceed to advocate for the removing of all tariffs in step with our free commerce settlement,” the spokesperson mentioned.Farrell mentioned the US commerce secretary – and tariff hawk – Howard Lutnick, had advised him there had been strain from inside the US administration for a rise on Australia’s tariff fee “however that President Trump had determined to take care of that 10%”.“I feel it is a vindication for the Albanese authorities – and notably the prime minister – and the cool and calm manner we have now carried out diplomacy with the USA.”Australia runs a commerce deficit with the US, however Farrell mentioned imposing reciprocal tariffs on US items, as a retributive measure for the US tariffs, would have been counterproductive.Farrell mentioned that Australia holding at 10% – whereas the tariffs imposed on different international locations had elevated – was a comparative win for Australia.“Australian merchandise are actually extra aggressive into the American market … merchandise like wine, beef, lamb, wheat are, in a relative sense, cheaper into the USA.”Farrell mentioned Australia nonetheless hoped to take away all tariffs from its imports into America, and he had invited Lutnick to Australia for additional talks.“We consider in free and truthful commerce, and we’ll proceed to place the argument to the US that they need to take away all tariffs on Australian merchandise in accordance with our free commerce settlement, and we’ll proceed to prosecute that argument.”Quizzed on whether or not the multibillion-dollar Aukus submarine deal had been an element within the commerce tariff negotiations, Farrell mentioned Australia’s shut defence relationship with the US was separate from its commerce hyperlinks.“We’ll proceed to have discussions with the US in regards to the Aukus: will probably be utterly impartial of our commerce relationship. There isn’t a job that’s extra vital for a federal authorities than our nationwide safety.”The Biden-era Aukus deal, below which Australia would purchase nuclear submarines from the US, is presently being reviewed by the Pentagon, below instruction from Trump.A Commonwealth Financial institution of Australia report issued Friday mentioned Australia was comparatively “well-insulated” from the turbulence brought on by the Trump tariffs.“We estimate Australian GDP will probably be simply 0.3% decrease over a number of years due to the tariffs. Solely round 5% of Australia’s exports are to the US. And Australia’s tariff fee is a comparatively low 10%.”Within the government order issued this week, Trump indicated he was open to additional negotiations on tariffs with international locations he noticed as aligned to his America First ideology.“Some buying and selling companions have agreed to, or are on the verge of agreeing to, significant commerce and safety commitments with the USA, thus signaling their honest intentions to completely treatment the commerce obstacles which have contributed to the nationwide emergency declared in Government Order 14257, and to align with the USA on financial and nationwide safety issues.”skip previous e-newsletter promotionSign as much as Breaking Information AustraliaGet a very powerful information because it breaksPrivacy Discover: Newsletters might comprise data about charities, on-line adverts, and content material funded by outdoors events. For extra data see our Privateness Coverage. We use Google reCaptcha to guard our web site and the Google Privateness Coverage and Phrases of Service apply.after e-newsletter promotionExecutive Order 14257 was Trump’s April order, which argued that “giant and protracted annual US items commerce deficits represent an uncommon and extraordinary menace to the nationwide safety and economic system of the USA”.Trump’s newest government order castigated unnamed international locations he felt had proven inadequate fealty to the US on commerce.“Different buying and selling companions, regardless of having engaged in negotiations, have supplied phrases that, in my judgment, don’t sufficiently tackle imbalances in our buying and selling relationship or have didn’t align sufficiently with the USA on financial and national-security issues,” the order learn.“There are additionally some buying and selling companions which have failed to have interaction in negotiations with the USA or to take sufficient steps to align sufficiently with the USA on financial and nationwide safety issues.”The brand new government order punishes small economies particularly, who’ve restricted buying and selling relationships with the US: Syria was given a 41% tariff fee, Myanmar and Laos 40%.The EU has a cut up tariff fee: 0% on some items, and 15% on others.China, one of many US’s largest buying and selling companions and a goal of Trump’s commerce ire, is just not talked about within the newest order. It stays at a 30% tariff fee, with some exemptions for items akin to smartphones and semiconductors. A proposed – punitive – 145% tariff on Chinese language imports has been paused till mid-August.The US treasury secretary, Scott Bessent, advised reporters the US has the “makings of a deal” with China, however that it’s not but full.“There’s nonetheless a number of technical particulars to be labored out on the Chinese language aspect between us. I’m assured that will probably be executed, nevertheless it’s not 100% executed.”With tariff negotiations nonetheless in play, Trump has taken purpose at international locations that negotiate with American drug corporations to pay decrease costs for prescription drugs, akin to Australia.Below Australia’s Pharmaceutical Advantages Scheme, the federal government negotiates immediately with drug corporations to safe comparatively low costs, a longstanding association, however one which has been a constant irritant for Trump.Australia has been constant in its dealings with the Trump administration that “the PBS is just not up for negotiation”.“Our authorities is getting on with the job of delivering cheaper medicines for Australians,” a authorities spokesperson mentioned.