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About 5% of exports form Australia go to the US. So not a big direct hit. The biggest concern is what happens to China, where most of our exports go. Any probl
by aussieguy1234 2y ago
About 5% of exports form Australia go to the US. So not a big direct hit.
The biggest concern is what happens to China, where most of our exports go. Any problems there will impact Australia.
- bruce511 2y agoYes. A slowdown in Chinese exports, may mean a slowdown in production, and hence a weakness in imports. At the moment the future is uncertain, and that uncertainty spooks markets. But markets recover once certainly is restored. Right now the uncertainty is mostly around the US consumer. Individually they're the big losers here. The goal of the tarrifs is to drive up consumer prices (to the point where local production is attractive. ) But local production takes time to create, so in the meantime they'll have to buy less. Once local production is in place, that will price output at market levels (meaning it stays expensive. ) The market for, say coffee, will fluctuate and production will rebalance somewhat. Americans will likely drink a bit less. But in the long run it'll just be normal. So yes, the market hates an uncertain future, but certainty arrives pretty quick.