US President Donald Trump has hinted at imposing a new tariff of up to 20 per cent on Australia and other nations.
The 90-day pause in the ‘reciprocal tariffs’ will expire on August 1, with many of the USA’s trading partners including Australia currently hit with a 10 per cent tariff.
However, Trump has now indicated these baseline tariffs could double in a matter of days.
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“I would say it’ll be somewhere in the 15 to 20 per cent range,” Trump said at a press conference in Scotland.
“I just want to be nice, [it will] probably one of those two numbers.”
During the pause, the United States has reached a number of deals with several major trading partners, including the UK, China and the European Union.
Trump said the new tariffs would impact those countries that have not signed a deal with the USA.
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“We’re going to be setting a tariff for, essentially, the rest of the world”, he said.
“That’s what they’re going to pay if they want to do business in the United States, because you can’t sit down and make 200 deals.”
No deal has been struck between Australia and the United States, however there is a free trade agreement between the two countries.
The Australian government has been critical of the tariffs imposed by the United States despite the presence of the free trade agreement.
“Our position is unchanged — any tariffs on Australian goods are unjustified and an act of economic self-harm,” a spokesperson for Trade Minister Don Farrell said.
“We will continue to engage at all levels to advocate for the removal of all tariffs, in line with our free trade agreement with the United States.”
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