Local producers respond to 10% tariff on Australian goods

ABC NEWS (Australia)

Here in Australia, cattle farmers are processing the news of the tariffs. Meat, including beef, is our single biggest export to the United States. While fashion chains and winemakers are also exposed.

Transcript

00:00This company sells wine in the States for about $30 a bottle.

00:08Now they're preparing to raise prices.

00:10No one wins by these tariffs being put in by Trump.

00:15Trade wars are really bad because they create uncertainty and it's the end consumers that

00:20have to pay more.

00:23From a glass of red to Wagyu, this farmer was shocked to see the US President single

00:28out Australian beef.

00:30I was momentarily terrified about the implications for that but it's since been clarified that

00:35it is just a 10% tariff.

00:38Meat, including beef, is our top export to the States, worth $6 billion.

00:44Precious gems and metals are worth more than $3 billion, while we also export a lot of

00:49medical products to the US.

00:52Gold and plasma and vaccines are exempt from these tariffs for now.

00:57On the flip side, fashion labels selling garments into America will have to raise prices

01:02there.

01:03From a small brand that's got a small loyal following in the US to larger brands like

01:08Zimmerman or Cotton On.

01:10Many of the industries impacted by these tariffs, like beef and wine, are only recovering from

01:16sanctions from China.

01:18Economists say the biggest risk to Australia now is if this situation hurts our biggest

01:24trading partner.

01:25However, there are possible upsides for our economy too.

01:29The cheap product that can't find its way into the United States is likely to find its

01:33way here and that means inflation will be driven lower and that could mean another cut

01:38to interest rates by the Reserve Bank in May.

01:41A local whiskey brand is already seeing the bright side as Australian drinkers boycott

01:46American bourbon.

01:48People are discovering us and saying, you know what, my money doesn't need to go over

01:51to a multinational back in the States the way they're carrying on at the moment.

01:55Let's keep it in Australia.

01:56After today, many people might need a stiff drink.

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