25% Tarrif Shock.
How US-Australia Aluminium and Steel Trade Changes Could Disrupt the Diamond Tools Industry.
Recent discussions covering aluminium and steel tariffs between Prime Minister Anthony Albanese and President Donald Trump have worried Australian suppliers, as a staggering 25% tariff on Australian aluminium and steel exports is heavily considered. Australia has been exempt from such tariffs previously; however, current conversations suggest this status is under review. The lack of a clear decision worries suppliers and manufacturers, given that aluminium and steel imports have typically been tariff-free.
A public announcement, with the ‘agreed upon words’, ‘it’s under consideration’- Anthony Albanese. If these tariffs are implemented, Trump’s “America First” policy will push local businesses to rely on domestic suppliers, as the 25% tariff closes the gap between Australian suppliers and the United States, potentially leading to increased manufacturing costs across various sectors:
Construction, Automotive, Manufacturing, Defence and Military, Energy, Aerospace, Rail and Transport, Agriculture, and Farming.
How Is It Looking for Australia?
Based on the conversations, former Trump adviser Peter Navarro has criticised Australia’s role in the U.S. aluminium market, asserting, “Australia is just killing our aluminium market.” He advocates for stricter measures to protect American manufacturers. Reuters
Treasurer Jim Chalmers has responded by highlighting that the U.S. was fully aware of Australia’s export levels and had previously raised no objections. He cautioned that imposing tariffs would result in higher costs for American businesses and consumers. Chalmers remarked, “If tariffs go up, American businesses and consumers will be the ones paying more.” The Guardian
How Does It Impact the Diamond Tools Industry?
While the primary focus is on steel and aluminium, the ripple effects of such tariffs could extend to industries like diamond tools. Potential consequences include higher consumer costs and supply chain delays. As Australian suppliers wait to know if the 25% tariff becomes actionable, it is, in the meantime, creating significant concern among suppliers and manufacturers.
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