Australians are no strangers to the ebb and flow of the global economy.

In return, these changes could impact everyone's daily lives—from the price of petrol to the cost of a loaf of bread.

Yet, recent developments in international trade could have a more significant effect on everyone's wallets in the most unexpected way possible.

United States (US) President Donald Trump recently rolled out a series of tariffs across the world, and Australia is not immune to the consequences.

David Leaney, a lecturer at the Australian National University's College of Business and Economics, spoke about the potential fallout from Trump's tariffs on our prime exports, including beef, steel, and aluminium.

Despite any efforts from the Australian government to secure exemptions, Aussies could feel a pinch on their wallets soon.

The price of supermarket goods may rise soon due to massive changes in US laws. Image Credit: Pexels/Gustavo Fring

'You can't quarantine the impact of tariffs just to one area,' Leaney explained.

'The bad news is that there is an impact on Australian consumers' cost of living from Trump's love affair with tariffs.'

The severity of this impact is still up for debate, but history offered some insight into the looming changes.

In 2018, then-Prime Minister Malcolm Turnbull celebrated an exemption for Australian steel.

However, Leaney suggested that this victory was more symbolic than substantial.

With only a tiny fraction of Australia's steel exports going to the US, the exemption did little to shield our economy from the broader effects of the tariffs.

When Trump targeted Chinese steel, it led to a reduction in production.

This reduction meant that China bought less Australian iron ore.

'China adjusted its supply to match the demand and didn't really get hurt,' Leaney said.

'The one that got hurt was Australia because it really impacted our iron ore exports to China. So, when you're trying to hurt Country A, it's Country B that often ends up hurt.'
Trump's proposed tariffs included a 25 per cent tariff on most imports from Mexico and Canada, which former Canadian Prime Minister Justin Trudeau criticised as 'd***'.

Additionally, many Chinese goods were also subjected to a 10 to 15 per cent tariff, with the possibility of an increase to 20 per cent across the board.

Trump also suggested reinstating a 25 per cent tariff on all steel and aluminium imports to boost US production and protect local jobs.

While these measures might be aimed at bolstering the American industry and workforce, they could also lead to higher steel prices in the US due to the inability to manufacture exports as cheaply as China.

That is when Australians might start to feel the pinch.

As tariffs drive up manufacturing costs in the US, the price of goods imported into Australia could also rise.

Everyday items inside supermarkets could see a price increase.

The cost of Australian exports might also climb as tariffs make Australian products less competitive on the global market, potentially leading to a decrease in demand and a subsequent hit to the economy.

In addition, superannuation funds may take a hit due to these tariffs implemented by the United States government.

Learn more about the possible changes here.

So, what can consumers do this time?

It's essential to stay informed about these international developments and understand how they might affect daily expenses.

Key Takeaways

• Tariffs imposed by the US are expected to have a secondary impact on the cost of living in Australia.
• ANU lecturer David Leaney suggested that Australian leaders' efforts to secure exemptions on key exports may not prevent the broader economic effects of these tariffs.
• Despite a previous tariff exemption for Australian steel, a significant drop in Chinese steel production affected Australian iron ore exports.
• The broader imposition of tariffs is likely to raise steel prices in the US, which could lead to economic repercussions that could ripple through to Australia.

Have you noticed any changes in the prices of your regular purchases? Are you concerned about how these international laws affect your cost of living? Share your thoughts and opinions with us in the comments below.

 

[tomtom]

Price of groceries " May " rise again !!!!!!!!!!! Why? as pensioners we cannot understand why we are getting a combined $7.20 a FORTNIGHT when prices are getting steeper every month - the bullshit of we raise your pension in line with cost of living rates - rubbish - how come our useless, lazy, incompetent, uneducated politicians get thousands of dollars a year increase with less work and support for their constituents, so, come on you absolutely useless politicians - DO SOMETHING, also, do away with unions, they are the biggest maggots in society, just as bad as politicians, probably worse - they too are destroying our country - take CFMEU for starters,

 

[Squizzy1]

This won't affect grocery prices, it may affect the budget bottom line, but that is yet to be seen, the cheapest Crayfish in years was when China had a tariff on it, may be that will happen to beef this time round, but the USA as a trusted ally is history, they are only reliable if they can make money from it, and we should never again get involved in their pointless wars imo.

 

[Tommy Jones]

It is about time Australia did wake up to itself, the government wasted the taxpayers millions propping up the car industry and look where that went. We no long keep our own ninety day emergency supply of fuel, we depend on America for that. The Australian government screwed over East Timor with their off shore gas fields, taking a larger cut, so we aren't so innocent. And surely we are still a preferred option even with a 25% tariff because our $ at the moment sucks.

It is about time Australia did wake up to itself, the government wasted the taxpayers millions propping up the car industry and look where that went. We no long keep our own ninety day emergency supply of fuel, we depend on America for that. The Australian government screwed over East Timor with their off shore gas fields, taking a larger cut, so we aren't so innocent. And surely we are still a preferred option even with a 25% tariff because our $ at the moment sucks.

We should be able to sustain at least Toyota making the Hilux and RAV4 here. We have a French company Thales making Bushmaster and Hawkei Armoref Personnel Carriers here and Albo has given 90 Bushmasters to Ukraine worth $200 million.
If we kicked out the French and had a car maker making both cars and military vehicles it would make a lot of sense. But then we have very little common sense in Australia……

 

[Luckyus]

Trump’s latest move could send your grocery bills soaring.
No different from our own village idiot Albanese, who it seems is trying to do to the country what some marine steward did to his poor mother?

 

[Luckyus]

I live about three hours out of Perth and my main complaint is freight.
I wanted to buy a king single bed for my daughter and the freight from Perth was more than the cost of the bed. I had one delivered from NSW for $79. Go figure.

I had the same thing item cost $110, postage $195...item still on shelf?

 

[Bridgit]

From what I can see is, what Trump is trying to do, is to reduce its its illegal immigration, reduce the crime and to get the US Debt back into the black and get manufacturing back to lift employment to make the US a strong economic country again. If the US is strong then the western world will be. European leaders have even said the Tariff increases and defense spending is a wake up call. It's about time Australia starts becoming independent and fending for ourselves in manufacturing. We have Gas, Oil and precious minerals. Unfortunately we have Albo, Wong, Plibersek & Rudd holding us back. Yes, I will here from all the "Trump Derangement Syndrome People"

Yes agreed - pity we don't seem to have anyone ( apart from Dutton) with the gonads to shift us from being dependant to self reliant!

 

[Bridgit]

If there were no wars, what was US doing in Afghanistan?

Trump didn't start it - that is the difference!

 

[Bridgit]

Trump had started the removal of US troops from Afghanistan then Biden had to finish it in the allotted time frame. No choice but what he did to save his troops from the taliban.

Rubbish the doddering old fool shouldn't been allowed near it.

 

[Bridgit]

A lot of Trump bashing on this site?

Yep by the rusted on and uninformed as usual.

 

[Veggiepatch]

Yep by the rusted on and uninformed as usual.

Useles$

 

[mOiOz]

I have experienced the same problem. I used to buy a lot of craft materials from USA but had to stop because of the cost of postage.

I use Amazon Prime $9.99 per month, I get everything from everywhere and MUCH cheaper, including non-prescription meds!

 

[Sherril54]

From what I can see is, what Trump is trying to do, is to reduce its its illegal immigration, reduce the crime and to get the US Debt back into the black and get manufacturing back to lift employment to make the US a strong economic country again. If the US is strong then the western world will be. European leaders have even said the Tariff increases and defense spending is a wake up call. It's about time Australia starts becoming independent and fending for ourselves in manufacturing. We have Gas, Oil and precious minerals. Unfortunately we have Albo, Wong, Plibersek & Rudd holding us back. Yes, I will here from all the "Trump Derangement Syndrome People"

Tell me how would any other party manage this situation.?

 

[mylittletibbies]

Yes agreed - pity we don't seem to have anyone ( apart from Dutton) with the gonads to shift us from being dependant to self reliant!

How do you expect us to be self reliant.
We don't even have enough population to defend ourselves, let alone military might

 

[mylittletibbies]

Trump didn't start it - that is the difference!

No instead he thinks he might annex Greenland and force Canada to become a state of America. And oh yes I forgot the Panama Canal.
He thinks he's USA's answer to Putin and all the uneducated, ignorant fools follow him like lambs to the slaughter. They are so brainwashed they can't see the forest for the trees.
Just wait, there will be a recession and he will blame anyone but himself, and the MAGA mutts will believe him.

 

[LesleyJayne]

Be thankful for what we've got and read the books like those written by the family. His madness goes back through the father, grandfather and probably further back. This bastard is Hitler NO 3 and God help all of us. Be honest with yourself and look at his dear friends....Putin, XI (china) and that bloke from North Korea. . Yanks have been controllers and murderers since the arrival of Columbus. They captured dark people and took them to America and made slaves of them and are killing them to this day. LEARN YOUR HISTORY.

How about you learn some history? Their own tribes sold them to the slavers, dark people selling dark people. There were more Irish slaves than dark ones, also whites were slaves at some time in history, in fact, most races have been slaves at some point in history. Another fact is that slavery is still going on, both whites and dark people enslaved to this day.

 

[Sherril54]

 

[Da Freddo]

How about you learn some history? Their own tribes sold them to the slavers, dark people selling dark people. There were more Irish slaves than dark ones, also whites were slaves at some time in history, in fact, most races have been slaves at some point in history. Another fact is that slavery is still going on, both whites and dark people enslaved to this day.

Too right, Miss LesleyJayne.
Us fellas know all about slavery.
It's called Marriage.

 

[Leenie]

It is about time Australia did wake up to itself, the government wasted the taxpayers millions propping up the car industry and look where that went. We no long keep our own ninety day emergency supply of fuel, we depend on America for that. The Australian government screwed over East Timor with their off shore gas fields, taking a larger cut, so we aren't so innocent. And surely we are still a preferred option even with a 25% tariff because our $ at the moment sucks.

Whitlam also screwed Timor letting Indonesia take over, and our journalists were killed.

 

[RobbyNotTheRobot]

Be thankful for what we've got and read the books like those written by the family. His madness goes back through the father, grandfather and probably further back. This bastard is Hitler NO 3 and God help all of us. Be honest with yourself and look at his dear friends....Putin, XI (china) and that bloke from North Korea. . Yanks have been controllers and murderers since the arrival of Columbus. They captured dark people and took them to America and made slaves of them and are killing them to this day. LEARN YOUR HISTORY.

Not really, Dr David Livingstone to his surprise found out the more powerful tribes where the ones rounding up those from the smaller tribes and selling them off. In other words they sold themselves off to the highest bidder going back a few thousand years to the Middle East and then to America. He was the one to get Great Britain to blockade the export of slaves from Africa . Learn your history.

 

[IAN3005]

It is about time Australia did wake up to itself, the government wasted the taxpayers millions propping up the car industry and look where that went. We no long keep our own ninety day emergency supply of fuel, we depend on America for that. The Australian government screwed over East Timor with their off shore gas fields, taking a larger cut, so we aren't so innocent. And surely we are still a preferred option even with a 25% tariff because our $ at the moment sucks.

The whole government needs a shake-up...the wasted money