Australia Urged to Remove Tariffs as Trump Extends Deadline

The Productivity Commission advises Australia to benefit from Trump's tariffs by not retaliating and instead removing more tariffs. The Commission's review shows a potential increase in Australia's GDP due to capital inflow. Trump delays tariffs, posing a risk of global retaliation. Australia is encouraged to eliminate 'nuisance tariffs' for economic gain.

Jul 8, 2025 - 11:25
 0  0
Australia Urged to Remove Tariffs as Trump Extends Deadline

The federal government's economic think tank, the Productivity Commission, predicts that Australia could benefit from Donald Trump's tariffs if it does not retaliate. The commission suggests that removing more of the nation's remaining tariffs could be advantageous.

In its annual trade and assistance review, the Productivity Commission's modeling shows that Trump's tariffs and sector-specific tariffs on aluminium, steel, and automobiles could boost Australia's economic output by 0.37 per cent.

Australia stands to gain because it faces lower tariff rates compared to other countries proposed by the US government. The risk of trade retaliation is a concern, with Trump delaying the implementation of tariffs while negotiations continue.

The Productivity Commission advises against retaliation and recommends removing 'nuisance tariffs' that impose high costs on businesses. It estimates compliance costs of $1.3 billion to $4 billion, outweighing the revenue collected.

Caution is urged regarding the government's 'Future Made in Australia' industry support program to ensure benefits outweigh costs and avoid trade protectionism.

According to the source: Australian Broadcasting Corporation.

What's Your Reaction?

Like Like 0
Dislike Dislike 0
Love Love 0
Funny Funny 0
Angry Angry 0
Sad Sad 0
Wow Wow 0