TARIFFS – GOVERNMENT POLICY – UNITED STATES

Albanese hits critical mass

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Original article by Geoff Chambers, Joe Kelly
The Australian – Page: 1 & 2 : 22-Oct-25

The $US8.5bn ($13bn) critical minerals framework agreement between Australia and the US will result in each country contributing at least US$1bn to critical minerals and rare earths projects over the next six months. They include a gallium project in Western Australia and the Nolans rare earths project in the Northern Territory. Meanwhile, US President Donald Trump says the AUKUS alliance will be a "deterrence" to Chinese aggression in the Indo-Pacific region. Trump contends that AUKUS will not be needed to defend Taiwan, because he does not think China will invade the self-governed territory. Trump has also ruled out reviewing the current tariffs on Australian imports, stating that the nation "pays among the lowest tariffs"; this includes a baseline tariff of 10 per cent and a 50 per cent levy on steel and aluminium products

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UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

US interested in critical minerals deal

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 15-Oct-25

Trade Minister Don Farrell recently met with US Trade Representative Jamieson Greer in Malaysia; he says Greer indicated that the US is interested in striking a deal with Australia regarding critical minerals. The issue is set to be a key issue on the agenda when Prime Minister Anthony Albanese holds talks with President Donald Trump at the White House next week. The federal government remains hopeful that it can use critical minerals as ‘leverage’ in tariff negotiations. The US has imposed a 50 per cent tariffs on Australia’s aluminium and steel imports, and the baseline tariff of 10 per cent on other imports.

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AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, UNITED STATES. DEPT OF COMMERCE

Australia could be a winner from US trade war

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Original article by Michael Read
The Australian Financial Review – Page: 3 : 8-Oct-25

Modelling undertaken by EY Oceania has concluded that the Australian economy is likely to be a net beneficiary of the Trump administration’s reciprocal tariffs regime. The firm’s chief economist Cherelle Murphy said the results of the modelling are based on the fact that Australia’s exports to the US will be subject to the ‘baseline’ tariff of just 10 per cent, making the nation’s exports more price competitive; in contrast, some nations are facing punitive tariffs of up to 50 per cent. EY also suggests that the cost of imports will also fall, as some countries are likely to redirect their goods to Australia instead of the US.

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ERNST AND YOUNG

One of Australia’s largest exports to the US escapes tariff hit

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Original article by Olivia Ireland
The Sydney Morning Herald – Page: Online : 13-Aug-25

US President Donald Trump has confirmed that gold imports will continue to be exempt from his administration’s tariffs regime. Trump has clarified the situation in response to the Customs & Border Protection agency’s recent ruling that one-kilogram and 100-ounce gold bars will be subject to the country-based tariffs regime that took effect on 7 August. Official data shows that Australia exported $11bn worth of non-monetary gold to the US during the first four months of 2025, compared with $2.95bn for the whole of 2024.

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UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Steady as we go despite Trump’s 20pc tariff threat

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Original article by Ben Packham
The Australian – Page: 4 : 30-Jul-25

US President Donald Trump has flagged an increase in his ‘liberation day’ baseline tariff to between 15 per cent and 20 per cent. Trump said countries that do not negotiate a special deal with the US will face an increase in the baseline tariff, which was originally set at 10 per cent. Trade Minister Don Farrell says the federal government has yet to be informed of any change in its baseline tariff, and it will assume that this will remain at 10 per cent until the Trump administration advises to the contrary. Australian Industry Group CEO Innes Willox says there is real concern that the nation will face the higher baseline tariff; he adds that tariffs of 15- 20 per cent would have a "real impact", whereas a tariff of 10 per cent would be an "irritant".

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UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, THE AUSTRALIAN INDUSTRY GROUP

Trump threatens to escalate trade war amid confusion over new tariff rates

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Original article by Callum Jones
The Guardian – Page: Online : 9-Jul-25

US President Donald Trump has ruled out another extension to the reciprocal tariffs deadline, which has already been pushed back to 1 August. Trump has also advised that more countries will be informed of their new tariffs in coming days; Japan and South Korea are among the 14 countries that have already received letters advising that they will face tariffs of up to 40 per cent. Meanwhile, Trump has announced punitive tariffs on a range of imports; this includes a tariff of 50 per cent on copper and up to 200 per cent on foreign-made drugs, although he indicated that pharmaceutical companies will be given at least a years’ notice.

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UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

China puts six-month limit on ease of rare-earth export licenses

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Original article by Lingling Wei, Brian Schwartz
The Australian – Page: Online : 12-Jun-25

Sources have indicated that the Chinese government has agreed to start approving rare-earth license applications for US companies immediately, as part of a proposed trade deal between the two nations. However, China is said to be planning to initially restrict rare earths export licences to just six months, which would give the nation leverage if renewed trade tensions emerge. These export licences are also said to primarily cover rare earths elements that are used in the manufacturing of electric vehicles, wind turbines, consumer electronics and military equipment. Meanwhile, US President Donald Trump has indicated that tariffs will stay at the levels that were agreed to during the recent negotiations in Geneva.

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UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Trump’s tariffs could spark fresh sell-off, says RBA

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Original article by Michael Read
The Australian Financial Review – Page: 4 : 4-Jun-25

Sharemarkets have recovered most of the losses incurred in response to the Trump administration’s reciprocal tariffs announcement in early April. However, the Reserve Bank of Australia’s chief economist Sarah Hunter says ongoing uncertainty regarding the US tariffs regime could result in renewed financial market volatility. Speaking ahead of the release of GDP data for the March quarter, Hunter warned that further changes to US tariffs or the economic outlook could prompt another equities sell-off; this in turn could adversely affect consumer spending and deter businesses from hiring staff or proceeding with capital investment plans.

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RESERVE BANK OF AUSTRALIA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

No rush to strike a tariff deal with volatile Trump

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Original article by Cameron Stewart
The Australian – Page: 6 : 14-May-25

Australia is among more than 50 countries that hope to negotiate a better tariffs arrangement with the Trump administration in the wake of the global turmoil caused by the so-called ‘Liberation Day’ in early April. Australia failed to receive an exemption from the baseline tariff of 10 per cent and a tariff of 25 per cent on steel and aluminium exports, despite being one of the few countries that has a trade surplus with the US. However, government officials have indicated that Labor will adopt a "wait and see" approach, and assess the outcome of other countries’ negotiations with the US before seeking a deal on tariffs.

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UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIAN LABOR PARTY

Rate cuts still on the way after tariff pause

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Original article by Cecile Lefort
The Australian Financial Review – Page: 29 : 14-May-25

IFM Investors’ chief economist Alex Joiner has described the 90-day tariff pause agreed to by the US and China as a "small step forward". However, he cautions that the significant tariffs that remain in place during the temporary truce in the trade war will still be a major challenge for US households, businesses and the broader economy. Meanwhile, financial markets expect the US Federal Reserve to reduce official interest rates by 25 basis points in September; the Reserve Bank of Australia is in turn tipped to cut the cash rate three times before the end of 2025, by 85 basis points in total.

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IFM INVESTORS PTY LTD, UMOW LAI & ASSOCIATES PTY LTD, RESERVE BANK OF AUSTRALIA