Tuesday, 28 January 2025 10:07

Tariff risk

Written by The Hound

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OPINION: Some commentators across the ditch reckon the second Trump administration's anticipated trade protectionism, coupled with China's economic fragility, poses a significant risk for Australia's agricultural export industries.

They fear Trump's rigid stance on tariffs could destabilise global trade flows and intensify China's economic slowdown, "creating cascading impacts on Australian beef, wool, cotton, barley, and dairy sectors".

The Hound takes what any Aussie says with a grain of salt, but if this holds water, NZ will also be affected.

Like us, Australia's overreliance on China leaves it vulnerable to macroeconomic shocks.

To mitigate risks, Australian & NZ producers would benefit by doubling down on diversifying trade partnerships through FTAs, particularly in India, Indonesia, the UK, and Southeast Asia.

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