Australian Prime Minister Anthony Albanese says U.S. tariffs on Australian steel and aluminum are unjustified, but his government will not retaliate with its own tariffs.
We're not retaliating with tariffs because nearly every mainstream economist has advised against it, including our own Treasury. Here's the quote from Steven Kennedy, treasury head, at a Senate estimates hearing on 26 February:
For a medium-sized economy such as Australia, there is overwhelming evidence that the use of trade restrictions imposes costs on our consumers and businesses... If Australia were to impose tariffs, we would bear nearly all the cost, given our size and inability to affect the world prices of the goods we import.
We would be shooting ourselves in the foot for the sake of what would essentially amount to little more than a symbolic gesture. We have other, more effective cards beyond tariffs.
It sucks but it is what it is. Being an island nation dependant on imports, we don't have much weight to throw around without self destructing with our already fucked cost of living crisis.
I can see what they're going for. We have a good history of exemptions, and getting another one would be a big win domestically with an election looming. You might think there's no way it will happen, but we do hold some cards, so to speak. I wouldn't be surprised if in more private negotiations they're threatening to close Pine Gap or cancel other cooperative military arrangements.
Clearly some countries didn’t get the memo. Guess it’s time to update the list of limp-wrist cunts for future reference. UK and Australia are really showing their true colours in all this.
For sure. Every country for itself. Just remember that in the near future when China is parked on your coastline and causing problems for all of you. I’ll be writing my MP urging them to stay out of it since we trade with China and generally get along. Cheers.
If Europe, Canada, Mexico, China and Australia raise tarifs for the US it'll push itself into bankruptcy faster than you can say "Cheeto and Elmo are sad losers"
The US imports more metal from Australia than we export. This will just shoot the US in the foot and will further incentivize the plan to build up Australian manufacturing. It makes perfect sense why they wouldn't retaliate.