WEBVTT - What do Trump's tariffs mean for Australia? 0:00:00.520 --> 0:00:04.000 Already and this is the daily This is the daily. 0:00:04.120 --> 0:00:06.840 Ohs oh, now it makes sense. 0:00:14.600 --> 0:00:17.720 Good morning and welcome to the Daily OS. It's Thursday, 0:00:17.880 --> 0:00:19.000 the thirteenth of March. 0:00:19.079 --> 0:00:20.440 I'm emma, I'm billy. 0:00:21.000 --> 0:00:23.599 Yesterday, most of us here in Australia woke up to 0:00:23.640 --> 0:00:27.240 the news that US President Donald Trump is going ahead 0:00:27.280 --> 0:00:30.720 with harsh tariffs on all countries who import their goods to. 0:00:30.760 --> 0:00:33.239 The US, with no exceptions. 0:00:33.760 --> 0:00:37.239 It comes after months of uncertainty and efforts by the 0:00:37.280 --> 0:00:42.720 Australian government to negotiate an exemption on Ossie steel and aluminium. However, 0:00:42.800 --> 0:00:46.199 the twenty five percent import tax officially came into effect 0:00:46.479 --> 0:00:50.640 yesterday afternoon, and that came after what was already a 0:00:50.640 --> 0:00:54.680 tumultuous week for the US economy and global markets, after 0:00:54.760 --> 0:00:56.960 Donald Trump refused to rule out. 0:00:56.800 --> 0:00:59.240 The possibility of a US recession. 0:00:59.720 --> 0:01:02.639 Today, today we are going to explain everything you need 0:01:02.680 --> 0:01:05.240 to know about what's going on with the US economy 0:01:05.280 --> 0:01:06.720 and these tariffs. 0:01:06.240 --> 0:01:12.200 This week, okay, and so as you've set up for us, 0:01:12.280 --> 0:01:15.679 it has been a big week for the economy, especially 0:01:15.720 --> 0:01:19.039 for the share market. There were big drops on Wall 0:01:19.040 --> 0:01:21.720 Street in the US and we also felt that here 0:01:21.720 --> 0:01:24.280 in Australia. Do you want to just take us back 0:01:24.360 --> 0:01:28.600 to the weekend when this kind of all started to unravel. 0:01:28.680 --> 0:01:29.520 What happened? 0:01:29.640 --> 0:01:33.119 Yes, So it all started on Sunday night when Donald 0:01:33.160 --> 0:01:36.319 Trump did an interview with Fox News, the US news outlet, 0:01:36.760 --> 0:01:39.680 and that kind of triggered this first wave of volatility 0:01:39.760 --> 0:01:43.480 that we saw this week. He was asked directly by 0:01:43.520 --> 0:01:46.440 a Fox reporter if he's expecting the US to enter 0:01:46.520 --> 0:01:49.480 a recession this year, and here's what he said. 0:01:49.920 --> 0:01:51.480 I hate to predict things like that. 0:01:52.240 --> 0:01:56.160 There is a period of transition because what we're doing 0:01:56.240 --> 0:01:59.240 is very big. Okay, So he refused to rule out 0:01:59.320 --> 0:02:02.960 the possibility of a recession, refuse to kind of speculate 0:02:03.000 --> 0:02:04.840 whether or not there would be one. And obviously a 0:02:04.880 --> 0:02:08.200 lot of people were watching that hoping that he would 0:02:08.280 --> 0:02:11.400 say with certainty that there wouldn't be one. He didn't 0:02:11.400 --> 0:02:13.880 do that. Do I just give us a quick refresher though, 0:02:13.919 --> 0:02:15.880 on what exactly is a recession? 0:02:16.160 --> 0:02:19.960 Yes, So when you hear the term recession, it's referring 0:02:19.960 --> 0:02:23.200 to a period of economic decline, which is usually marked 0:02:23.240 --> 0:02:27.480 by things like reduced consumer spending and job losses. So 0:02:27.800 --> 0:02:32.079 us the customers spending less money, and more unemployed people. 0:02:32.680 --> 0:02:36.120 Most economists do have a clear definition for recession, and 0:02:36.200 --> 0:02:40.080 that includes there being two consecutive three month periods or 0:02:40.160 --> 0:02:45.320 quarters of a country's gross domestic product going backwards. So 0:02:45.360 --> 0:02:48.000 there are a number of key indicators that can tell 0:02:48.080 --> 0:02:51.640 us a recession is around the corner, and those indicators 0:02:51.639 --> 0:02:57.080 are things like market volatility, consumer attitudes, widespread unemployment, and 0:02:57.240 --> 0:02:59.720 increased rates of people not being able to pay back 0:02:59.720 --> 0:03:03.600 there credit card bills or their home loans. So when 0:03:03.639 --> 0:03:06.760 all of those things are bubbling away, that's a pretty 0:03:06.760 --> 0:03:09.760 good indication that we're headed for a recession. 0:03:10.160 --> 0:03:11.840 Okay, so obviously not great. 0:03:11.960 --> 0:03:16.120 Not what anyone wants is their cause for concern that 0:03:16.160 --> 0:03:18.320 there could be a recession in the US. 0:03:18.800 --> 0:03:23.560 So interestingly, most indicators on the US economy actually look 0:03:23.840 --> 0:03:27.559 pretty strong when we consider those kind of key recession indicators. 0:03:28.040 --> 0:03:31.880 So hiring and job creation rates are looking good. Economists 0:03:31.919 --> 0:03:36.400 aren't worried about those things. There are some indicators though, 0:03:36.720 --> 0:03:40.400 that there could be an increase in kind of consumer pessimism. 0:03:40.520 --> 0:03:45.440 So consumer confidence figures have dropped, stock markets have been fluctuating, 0:03:46.000 --> 0:03:48.880 and that could all lead to less spending, and that's 0:03:48.960 --> 0:03:52.880 something that could result in recession, but a number of 0:03:52.920 --> 0:03:57.160 major financial institutions release probability ratings to give us an 0:03:57.200 --> 0:04:00.200 indication on what they're experts and what their analysis says 0:04:00.240 --> 0:04:02.880 about the likelihood of a recession. And we've seen some 0:04:03.000 --> 0:04:06.360 reevaluated predictions out of the US. So, for example, JP 0:04:06.520 --> 0:04:10.240 Morgan now believes a recession is forty percent likely and 0:04:10.320 --> 0:04:13.080 Goldman Sachs puts it at a twenty percent chance for 0:04:13.120 --> 0:04:13.880 the US. 0:04:14.120 --> 0:04:17.680 Right, And there's also all of this added uncertainty with 0:04:17.920 --> 0:04:20.520 the tarifsts that we'll get into. Is that also kind 0:04:20.520 --> 0:04:25.160 of why people are speculating, because with uncertainty comes speculation 0:04:25.520 --> 0:04:27.839 that we don't know obviously what's going to happen. 0:04:27.920 --> 0:04:33.160 Yeah, whenever there is financial uncertainty insecurity about the future, 0:04:33.279 --> 0:04:36.600 when people don't feel confident about the road ahead, that 0:04:36.680 --> 0:04:40.600 can lead to these kind of big drops on stock markets. 0:04:41.080 --> 0:04:44.599 People panic, they might sell their shares. The fluctuations kind 0:04:44.600 --> 0:04:47.640 of add to these conversations around oh dear or something 0:04:47.640 --> 0:04:48.640 bigger around the corner. 0:04:48.880 --> 0:04:52.560 And that's kind of what happened right after this interview 0:04:52.560 --> 0:04:54.040 with Fox right exactly. 0:04:54.160 --> 0:04:58.839 So stock markets pretty much immediately crashed, firstly in the US, 0:04:58.920 --> 0:05:01.560 but then around the world. In including here in Australia. 0:05:01.600 --> 0:05:04.640 So on Tuesday, the ASX plummeted by more than fifty 0:05:04.720 --> 0:05:08.680 billion dollars and that was directly linked to uncertainty over 0:05:08.680 --> 0:05:11.279 the US economy, all from you know, a few words 0:05:11.320 --> 0:05:15.560 said by the president of the world's largest economy. Tech 0:05:15.560 --> 0:05:18.680 stocks saw the biggest drops, and that was in the 0:05:18.800 --> 0:05:22.400 US as well as here on the ASX and Tesla 0:05:22.440 --> 0:05:27.320 stocks interestingly slipped by fifteen percent on Monday, and shares 0:05:27.480 --> 0:05:30.719 in the ev company, the Elon Musk owned company, have 0:05:30.880 --> 0:05:35.479 actually halved in value since December, so pretty consistent downturn 0:05:35.760 --> 0:05:37.159 for a company like Tesla. 0:05:37.640 --> 0:05:41.359 And fun fact, after this terrible drop from Tesla on 0:05:41.440 --> 0:05:45.120 the share market, Trump and Elon Masks stood in front 0:05:45.120 --> 0:05:48.000 of the White House with their Tesla cars trying to 0:05:48.040 --> 0:05:50.960 kind of do this pr stunt to say, you know, look, 0:05:51.040 --> 0:05:54.400 the President is still using Tesla's so so should. 0:05:54.160 --> 0:05:56.239 All of us. Apparently was still going strong. 0:05:56.320 --> 0:05:59.760 They say, okay, So this fluctuation across stock markets is 0:05:59.760 --> 0:06:02.800 one part of the story. But there's this other huge 0:06:02.839 --> 0:06:06.520 policy from the Trump administration that we have flagged, and 0:06:06.560 --> 0:06:08.240 it's one we have been talking about for quite a 0:06:08.240 --> 0:06:12.520 while now. Since Trump became the president, and that is tariffs. 0:06:12.800 --> 0:06:16.920 Do you want to first remind us what that term means? 0:06:16.960 --> 0:06:18.000 What are tariffs? Yes? 0:06:18.040 --> 0:06:22.200 So, put really simply, tariffs are a type of import tax. 0:06:22.440 --> 0:06:25.880 So when foreign made goods are brought into another country, 0:06:26.160 --> 0:06:29.200 they are subject to fees or duties. Those fees or 0:06:29.240 --> 0:06:33.160 duties are known as tariffs. So governments might use tariffs 0:06:33.279 --> 0:06:36.760 as a means to protect local manufacturing. So this is 0:06:36.880 --> 0:06:40.159 because these taxes make imported goods more expensive. 0:06:40.279 --> 0:06:42.400 So rather than absorb the cost of. 0:06:42.320 --> 0:06:45.640 Input fees on foreign goods, consumers might think, oh, I'll 0:06:45.640 --> 0:06:48.520 buy a locally made product because it's cheaper or it 0:06:48.520 --> 0:06:51.720 doesn't have those taxes on it. The flip side of 0:06:51.720 --> 0:06:55.000 that is, generally speaking, customers might not always have the 0:06:55.080 --> 0:06:57.760 option to purchase domestic goods. You know, depending on what 0:06:57.760 --> 0:06:59.880 those goods are, they might not be a local market 0:07:00.440 --> 0:07:02.720 and you know, that means that they will usually end 0:07:02.800 --> 0:07:06.840 up being the hardest hit by tariffs. Customers usually end 0:07:06.920 --> 0:07:10.840 up absorbing them. So specifically, these US tariffs could make 0:07:10.880 --> 0:07:15.240 things more expensive for American consumers. They might not necessarily 0:07:15.320 --> 0:07:20.400 impact Australian exports immediately unless demand for goods ends up 0:07:20.440 --> 0:07:23.080 shifting that is more concerning, but we can get into 0:07:23.120 --> 0:07:24.800 the specifics of that a little bit later. 0:07:25.480 --> 0:07:28.200 Okay, So my understanding is that the thinking behind Trump 0:07:28.320 --> 0:07:32.000 introducing these tariffs is for more things to be made 0:07:32.200 --> 0:07:35.000 in the US. He basically wants everything to be made 0:07:35.120 --> 0:07:38.400 in the US and for customers to only be buying 0:07:38.480 --> 0:07:40.400 things that were made in the US. 0:07:40.560 --> 0:07:44.720 Yes, he said in strong terms that he wants manufacturers 0:07:44.760 --> 0:07:50.400 to bring their manufacturing businesses to US shores to make 0:07:50.480 --> 0:07:54.640 those products there in America. Interestingly, as well, tariffs are 0:07:54.760 --> 0:07:58.280 often used to sanction other countries as a sort of 0:07:58.560 --> 0:08:02.400 political device in trade wars, and we have seen that 0:08:02.440 --> 0:08:05.400 play out with the US and China and heavy tariffs 0:08:05.400 --> 0:08:08.120 that it's imposed on them for different reasons than that 0:08:08.280 --> 0:08:09.880 kind of local manufacturing angle. 0:08:10.280 --> 0:08:12.720 And so what else you just mentioned China? I know 0:08:12.760 --> 0:08:15.840 there were also ones on Canada and Mexico. What else 0:08:15.880 --> 0:08:18.480 has happened in the lead up to this week before 0:08:18.520 --> 0:08:20.840 we get into what actually has happened this week. 0:08:20.960 --> 0:08:25.520 Yes, So since Trump was elected in November, he was 0:08:25.560 --> 0:08:28.840 inaugurated in January, and even before then, he has been 0:08:28.920 --> 0:08:33.240 promising sweeping import tariffs aimed at, like we've said, bolstering 0:08:33.360 --> 0:08:37.920 US manufacturing also aimed at strengthening the US border. This 0:08:38.080 --> 0:08:40.280 was a policy area that he was really focused on 0:08:40.360 --> 0:08:43.360 in his first term as president, so it's not a 0:08:43.400 --> 0:08:47.880 particularly shocking policy area for Trump to be so heavily 0:08:48.040 --> 0:08:50.760 invested in. But in the first few weeks off his 0:08:50.880 --> 0:08:53.880 current term, Trump did announce a number of tariffs which 0:08:53.920 --> 0:08:57.760 included goods imported from Mexico and Canada, and that had 0:08:57.760 --> 0:09:01.080 to do with managing the US borders. We heard a 0:09:01.080 --> 0:09:04.640 lot of commentary at the time about illegal drug importations, 0:09:04.880 --> 0:09:09.679 illegal immigration. But then Trump also announced tariffs against China. 0:09:10.320 --> 0:09:13.240 The Mexico Canada tariffs, there was a lot of stop start, 0:09:13.280 --> 0:09:16.400 back and forth. There were pauses, negotiations about you know 0:09:16.440 --> 0:09:19.439 how they would end up working, but they did recently 0:09:19.559 --> 0:09:22.880 come into effect. And then last month Trump announced that 0:09:22.920 --> 0:09:26.119 the US would impose twenty five percent tariffs on imported 0:09:26.200 --> 0:09:30.440 steel and aluminium. That would be on all countries that 0:09:30.520 --> 0:09:34.160 import those products to the US and that includes Australia. 0:09:34.320 --> 0:09:38.239 Now since then, Australia has been really focused on avoiding 0:09:38.440 --> 0:09:40.319 that specific tariff. 0:09:40.520 --> 0:09:44.040 And steel and aluminium in Australia is really important. It's 0:09:44.080 --> 0:09:46.000 one of our biggest exports. Do you want to just 0:09:46.040 --> 0:09:50.079 explain more kind of the importance of steel and aluminium 0:09:50.160 --> 0:09:52.839 to Australia, because it's not something that we learn about, 0:09:52.880 --> 0:09:55.040 really yeah, no, and as you study it. 0:09:55.000 --> 0:09:57.240 Unless you study it, unless you work in the field 0:09:57.280 --> 0:10:00.040 of steel and aluminium, or aluminum. 0:09:59.440 --> 0:10:00.920 As America would call it. 0:10:01.320 --> 0:10:05.040 Australia does export hundreds of millions of dollars of steel 0:10:05.040 --> 0:10:06.439 and aluminium. 0:10:05.840 --> 0:10:07.440 To the US every year. 0:10:08.160 --> 0:10:11.679 Steel is used in things like you know, car manufacturing, 0:10:11.920 --> 0:10:16.280 heavy industries, construction, and aluminium is used also in car 0:10:16.320 --> 0:10:20.880 manufacturing as well as in household items pots, pans, foil, 0:10:21.240 --> 0:10:25.640 so they're kind of very versatile exports. According to government data, 0:10:25.679 --> 0:10:29.240 the US was the world's second largest steel importer in 0:10:29.280 --> 0:10:33.280 twenty twenty three, and its aluminium imports have actually increased 0:10:33.320 --> 0:10:37.280 by twenty five percent since twenty fifteen. Now, last year, 0:10:37.679 --> 0:10:41.400 the US imported around four hundred million US dollars of 0:10:41.400 --> 0:10:44.800 Australian steel and around two hundred and seventy million dollars 0:10:44.800 --> 0:10:48.200 of Australian aluminium. That might sound like a lot of money, 0:10:48.280 --> 0:10:52.000 but actually in the broader context of the US, Australia 0:10:52.440 --> 0:10:56.480 isn't a major exporter of aluminium to America Compared to 0:10:56.559 --> 0:10:59.959 other trading partners. So, for example, in the year of February, 0:11:00.160 --> 0:11:04.000 the US imported three million tons of aluminium from Canada 0:11:04.040 --> 0:11:07.080 and three hundred and fifty thousand tons from the UAE. 0:11:07.720 --> 0:11:12.400 Australia exported ninety thousand tons during that time, So overall 0:11:12.440 --> 0:11:16.160 about ten percent of our steel and aluminium goes to America. 0:11:16.280 --> 0:11:19.880 So it's not nothing, but there are other markets and 0:11:19.960 --> 0:11:23.839 other ways to kind of diversify our exports of those goods. 0:11:24.120 --> 0:11:28.400 Okay, So Trump announced these tariffs. Then Anthony Albanesi, Australia's 0:11:28.400 --> 0:11:30.559 Prime minister, has a call with Trump to try to 0:11:30.559 --> 0:11:34.480 see if Australia specifically can get an exemption. Albanzi was 0:11:34.559 --> 0:11:37.760 quite positive about that call. But what has happened since 0:11:37.800 --> 0:11:41.199 that has meant that there will now be these tariffs 0:11:41.200 --> 0:11:42.440 and there will be no exemption. 0:11:42.640 --> 0:11:46.199 Yes, So you might remember that phone call, and President 0:11:46.240 --> 0:11:50.040 Trump had spoken to US media said that he thought 0:11:50.080 --> 0:11:53.080 Albanzi was a very nice man, that the exemption for 0:11:53.200 --> 0:11:57.560 Australia was under consideration. Also at that time, Trump told 0:11:57.600 --> 0:11:59.720 reporters in the White House that Australia was one of 0:11:59.720 --> 0:12:03.439 the only countries where the US has a trade surplus. 0:12:03.720 --> 0:12:07.439 Now what that means is Australia buys more American goods 0:12:07.640 --> 0:12:11.480 than the US buys from Australia. Trump signed a series 0:12:11.520 --> 0:12:14.440 of executive orders last month following that call. He did 0:12:14.440 --> 0:12:17.680 say no countries would be exempt, but he was asked 0:12:17.720 --> 0:12:21.680 directly about Australia and said he was giving it great consideration. However, 0:12:22.320 --> 0:12:25.679 as we know, that has since fallen through and at 0:12:25.720 --> 0:12:28.560 the time a senior trade advisor to Trump his name 0:12:28.600 --> 0:12:32.319 is Pete Navarro, he had accused Australia of quote killing 0:12:32.440 --> 0:12:36.880 the American aluminium market. Navarro was actually a key figure 0:12:36.920 --> 0:12:40.680 in Trump's similar tariffs in twenty eighteen, and those are 0:12:40.760 --> 0:12:44.760 the ones that former PM Malcolm Turnbull actually successfully negotiated 0:12:44.880 --> 0:12:48.040 to avoid. But in short, it appears this time that 0:12:48.080 --> 0:12:53.000 Australia's efforts to secure an exemption now have seemingly failed. 0:12:53.360 --> 0:12:56.000 So the White House confirmed on Tuesday that the tariffs 0:12:56.080 --> 0:12:59.000 would be going ahead without exception. We heard from White 0:12:59.000 --> 0:13:02.640 House spokeswoman Caroline Leave. She told the ABC that Trump 0:13:02.960 --> 0:13:07.160 considered the request and considered against it. To use her words, 0:13:07.600 --> 0:13:12.199 Peter Navarro, who worked with Trump and Turnbull in twenty eighteen, 0:13:12.760 --> 0:13:15.560 he said that every country that was exempt from the 0:13:15.600 --> 0:13:20.720 tariffs last time abused those exemptions. So speaking to the ABC, 0:13:20.920 --> 0:13:23.959 Navarro said, the lesson from the first Trump tariffs has 0:13:24.000 --> 0:13:27.640 been quote is that exemptions to anybody a counterproductive. They 0:13:27.679 --> 0:13:30.240 don't work for the American people. When we were kind 0:13:30.320 --> 0:13:32.920 enough as a country to make those gestures to our friends, 0:13:32.920 --> 0:13:35.520 he said, they bit the hand that fed them, and 0:13:35.600 --> 0:13:37.520 that's not going to happen again. 0:13:38.320 --> 0:13:42.080 Okay, those are pretty definitive words. We do know though that, 0:13:42.240 --> 0:13:44.400 you know, when we look at Mexico and Canada and 0:13:44.440 --> 0:13:46.920 the tariffs that were meant to be introduced there, they 0:13:47.000 --> 0:13:49.800 were briefly stopped. Like you said, there was that stop start, 0:13:49.840 --> 0:13:51.600 So we do know that there is a possibility that 0:13:51.640 --> 0:13:53.000 Trump could change his mind. 0:13:53.360 --> 0:13:53.920 But let's just. 0:13:53.840 --> 0:13:57.320 Say that these tariffs are here to stay. How would 0:13:57.360 --> 0:14:01.800 it meaningfully impact Australia and what would the economic fallout be? 0:14:02.040 --> 0:14:05.400 Yeah, I think it's important to note that the initial 0:14:05.480 --> 0:14:09.320 impact on local manufacturing would be minor, So all the 0:14:09.320 --> 0:14:12.960 experts are telling us that the effect straightaway is going 0:14:13.000 --> 0:14:15.920 to be pretty negligible. But as we discussed at the 0:14:15.920 --> 0:14:19.240 start of the episode, tariffs are more likely going to 0:14:19.280 --> 0:14:23.760 impact consumers on the other end, Uncertainty then kind of 0:14:23.800 --> 0:14:27.960 comes from how other markets will react. So there are 0:14:27.960 --> 0:14:31.560 sweeping tariffs on so many countries as we've discussed, and 0:14:31.640 --> 0:14:35.840 bigger exporters like China might resort to a trade tactic 0:14:36.000 --> 0:14:38.960 known as dumping. Now, this is when a product gets 0:14:39.000 --> 0:14:42.000 exported to a foreign market at a lower price than 0:14:42.080 --> 0:14:46.520 it costs domestically. So, for example, if an Aussie steel 0:14:46.560 --> 0:14:49.400 manufacturer sells their stell to the US for less than 0:14:49.440 --> 0:14:54.400 they charge Australian customers, part of this dumping also means 0:14:54.640 --> 0:14:58.160 decreased demand in a market. So if demand for steel 0:14:58.240 --> 0:15:01.920 in the US drops, some foreign businesses might flood other 0:15:02.000 --> 0:15:05.680 markets like Australia with excess stock. That can lead to 0:15:05.680 --> 0:15:08.840 more competition and that can have negative effects on local businesses. 0:15:09.440 --> 0:15:12.440 The federal government actually has an Anti Dumping Commission aimed 0:15:12.480 --> 0:15:16.680 at protecting local manufacturers, so there are some regulatory measures 0:15:16.720 --> 0:15:17.320 in place. 0:15:18.000 --> 0:15:18.760 But the other. 0:15:18.600 --> 0:15:22.960 Significant concern here is the potential for a global trade war. 0:15:23.640 --> 0:15:26.440 The University of Sydney School of Economics put this better 0:15:26.440 --> 0:15:26.960 than I could. 0:15:26.960 --> 0:15:29.360 They posted an interesting explainer. 0:15:28.920 --> 0:15:32.000 On this whole issue, which said a trade war quote 0:15:32.240 --> 0:15:36.320 could disrupt supply chains and weaken manufacturing activity across East 0:15:36.320 --> 0:15:39.720 and Southeast Asia. Given that Japan, Korea and China are 0:15:39.760 --> 0:15:44.440 key export destinations for Australia, such disruptions could have significant 0:15:44.560 --> 0:15:50.000 economic consequences. We've also spoken previously to economist Greg Jericho 0:15:50.080 --> 0:15:51.960 and he's explained to The Daily I was before that 0:15:52.480 --> 0:15:55.960 if the Chinese economy is doing poorly, then the Australian 0:15:56.000 --> 0:15:59.120 economy generally follows suits. So unfortunately, we're in this kind 0:15:59.160 --> 0:16:02.400 of place global or in this unique kind of Asia 0:16:02.440 --> 0:16:06.360 Pacific region, in this position unfortunately where if other big 0:16:06.480 --> 0:16:11.360 key players like China, Japan, etc. Are hit or impacted, 0:16:11.600 --> 0:16:15.480 then you know, we tend to also experience negative fallouts 0:16:15.520 --> 0:16:16.400 in our own economy. 0:16:16.640 --> 0:16:16.840 Yeah. 0:16:16.840 --> 0:16:20.040 It's a real example of the globalized world that we 0:16:20.080 --> 0:16:23.360 live in and the impact of globalization on economy. Exactly, 0:16:23.440 --> 0:16:27.240 something happens to one country, it literally impacts all countries. 0:16:27.800 --> 0:16:31.200 How has the Australian federal government responded to this news? 0:16:31.560 --> 0:16:35.720 So we heard from Prime Minister Anthony Albanezi yesterday. He 0:16:36.040 --> 0:16:39.680 did a press conference and addressed this decision by Trump. 0:16:40.320 --> 0:16:44.720 He had very clear disappointment over that decision and here 0:16:44.880 --> 0:16:46.080 is a bit of what he said. 0:16:46.640 --> 0:16:51.760 Such a decision by the Trump administration is entirely unjustified. 0:16:51.920 --> 0:16:55.640 Australia will continue working hard for a different outcome and 0:16:55.760 --> 0:17:01.560 discussions with the Trump administration. Ongoing grafts and escalating trade 0:17:01.600 --> 0:17:05.320 tensions are a form of economic self harm. They are 0:17:05.480 --> 0:17:09.560 paid by the consumers. This is why Australia will not 0:17:09.720 --> 0:17:14.399 be imposing reciprocal tariffs on the United States. Such a 0:17:14.520 --> 0:17:18.640 course of action would only push up prices for Australian 0:17:18.680 --> 0:17:20.680 consumers and increase inflation. 0:17:21.520 --> 0:17:25.320 So from Albanese's words yesterday, we're expecting the government to 0:17:25.400 --> 0:17:28.760 continue to put forward that very strong case for an exemption. 0:17:29.160 --> 0:17:32.920 As Albanezi said, he also noted, quote we will continue 0:17:32.920 --> 0:17:35.359 to point out that the United States interests are not 0:17:35.440 --> 0:17:38.800 served by today's decision, and in an interview with Sky, 0:17:39.000 --> 0:17:41.520 Foreign Minister Penny Wong said the tariffs were quote not 0:17:41.720 --> 0:17:44.760 the way to treat a friend and partner. So the 0:17:44.760 --> 0:17:46.879 word from the Australian government really leaning into the kind 0:17:46.920 --> 0:17:49.560 of alliance and the decades long friendship between the two 0:17:49.680 --> 0:17:53.439 nations and what about the coalition So Billy, of course, 0:17:53.560 --> 0:17:56.320 there is an election coming up. We are heading to 0:17:56.359 --> 0:17:59.679 the polls sooner or later, and we're probably going to 0:17:59.720 --> 0:18:01.679 hear a lot more about this over the coming weeks 0:18:01.840 --> 0:18:06.000 from the Coalition, the Opposition has criticized Albanzi quite strongly 0:18:06.040 --> 0:18:09.840 for how he's handled this tariff debacle and these negotiations. 0:18:09.840 --> 0:18:13.000 They've kind of suggested that he didn't do enough, didn't 0:18:13.000 --> 0:18:15.720 work hard enough with Trump, that he should have actually 0:18:15.720 --> 0:18:18.320 flown to the White House for an in person. 0:18:17.960 --> 0:18:19.280 Discussion or negotiation. 0:18:19.960 --> 0:18:23.360 The Coalition has also called into question Kevin Rudd. Now 0:18:23.400 --> 0:18:27.200 he is Australia's ambassador to the US. You might remember 0:18:27.359 --> 0:18:30.320 there was a bit of politicking around whether or not 0:18:30.680 --> 0:18:32.960 he was the right person for the job after some 0:18:33.040 --> 0:18:35.679 old comments that he made that were very critical of 0:18:35.680 --> 0:18:38.679 Trump emerged. Trump had sort of hit back at that 0:18:38.840 --> 0:18:42.000 before he was elected, said that Kevin Rudd was nasty, 0:18:42.680 --> 0:18:45.240 and the Coalition now we're kind of asking, well, is 0:18:45.320 --> 0:18:48.600 Kevin Rudd the right person to be representing Australia in 0:18:48.680 --> 0:18:52.159 these discussions? He's our man on the ground. Is he 0:18:52.200 --> 0:18:56.159 equipped to deal with the Trump administration? But Anthony Alberizi 0:18:56.720 --> 0:18:59.920 backed in Rudd yesterday. During that address, the PM described 0:19:00.119 --> 0:19:03.600 him as a quote very effective ambassador. 0:19:03.560 --> 0:19:06.399 Such a complex topic. I think we got through a 0:19:06.440 --> 0:19:08.560 lot today, a very effective podcast. 0:19:08.600 --> 0:19:10.760 Well, thank you for listening, if you're still awake, I 0:19:10.840 --> 0:19:12.960 really appreciate it. Of course. 0:19:13.440 --> 0:19:17.320 No, there's nothing that excites us small than economics a mare, 0:19:18.040 --> 0:19:20.600 and thank you so much for listening to this episode 0:19:20.640 --> 0:19:23.440 of The Daily os. We'll be back again this afternoon 0:19:23.480 --> 0:19:30.280 with your evening headlines. Until then, have a great day. 0:19:30.680 --> 0:19:32.960 My name is Lily Madden and I'm a proud Arunda 0:19:33.200 --> 0:19:38.000 Bungelung Chalcuttin woman from Gadighl Country. The Daily oz acknowledges 0:19:38.080 --> 0:19:40.240 that this podcast is recorded on the lands of the 0:19:40.280 --> 0:19:43.800 Gadighl people and pays respect to all Aboriginal and Torres 0:19:43.840 --> 0:19:45.000 Strait Island and nations. 0:19:45.320 --> 0:19:48.240 We pay our respects to the first peoples of these countries, 0:19:48.359 --> 0:19:49.560 both past and present.