Will international laws affect the way Aussies shop soon? Lecturer shares his thoughts

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.


compressed-pexels-supermarkets.jpeg
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.
 

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Doesn't draw a wage for President - same with Musk. Both working their asses off for their country - we could try that here - unlikely!
Check that out!! The President`s wage is $400,000 and a lot of extra`s, and boy does he have plans to make more $$ for himself. He has deals in the wings with Russia (that`s why he`s brown nosing Putin). He plans to make a name for himself in Palestine (Plundering) the land. Taking of rare earths in Ukraine, it goes on and on and don`t even mention Musk, he is the richest man in the world YES working real hard for themselves, don`t even bother to compare them with any Australian Politician.
 
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IT's simple America pays the tariff on everything they put tariffs on. It doesn't cost us. They pay not us. If there are tariffs on beef we may get some better quality beef for a change. There tariffs goes from them to them ,for them.
 
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.
Only AFTER they got their money
The BRITISH EMPIRE WAS CREATED ON SLAVERY......JUST SAYING😃
 
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And we've just lost our last large scale flat glass manufacturer due to high cost of energy( gas) for the furnaces, that's OK, China will gladly sell it to us,
But who cares let's just run around spruiking our TDS bullshit with our heads up our arse!
I guess you haven't seen the latest comical on the cretiniser extollimg natural gas and featuring a bit sheet of glass being rolled out? Is that some Chinese mill using Strayan gas? Fake or true?
 
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Trumps doing what all politicians should be doing, looking after their own, a lot of Trump bashing on this site, why don't we wait and see , maybe our idiot politicians should take a leaf out of his book.
 
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There is a lot of dissatisfaction regarding the recent Pension rise and the cost of living but
Who have we got to blame for this ? I will reserve judgement..
 
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if the prime minister and Turnbull had kept their north and south shut maybe, just maybe australia would be still okay. Those of you who have ridiculed Trump should think again.
 
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.
I totally agree with your comments I can see a Hitler no. 3 as well.
 
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A bit of a silly question really. Constantly notice price changes, but yes gone up so much that many things I would like are absent from my cart. When people for whatever reason stop buying our economy will be more in the tank.b
 
I'm not too sure what the general consumer purchases from America. The few items I ordered from the USA inevitably are despatched to me from China or some other country so I trace the true supplier and order direct. Stuff America.
 

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