Australia won’t retaliate against ‘unjustified’ US tariffs on steel and aluminum
Australia won't retaliate against 'unjustified' US tariffs on steel and aluminum
cross-posted from: https://lemmy.ca/post/40630983
Yeah, fuck this guy.
Well, I guess between Canada and Australia, we’ll get to run the experiment on whether the Canuck or cuck approach is the right path.
We're not retaliating with tariffs because nearly every mainstream economist has advised against it, including our own Treasury. Here's the quote from Steven Kennedy, treasury head, at a Senate estimates hearing on 26 February:
For a medium-sized economy such as Australia, there is overwhelming evidence that the use of trade restrictions imposes costs on our consumers and businesses... If Australia were to impose tariffs, we would bear nearly all the cost, given our size and inability to affect the world prices of the goods we import.
We would be shooting ourselves in the foot for the sake of what would essentially amount to little more than a symbolic gesture. We have other, more effective cards beyond tariffs.
It sucks but it is what it is. Being an island nation dependant on imports, we don't have much weight to throw around without self destructing with our already fucked cost of living crisis.
I can see what they're going for. We have a good history of exemptions, and getting another one would be a big win domestically with an election looming. You might think there's no way it will happen, but we do hold some cards, so to speak. I wouldn't be surprised if in more private negotiations they're threatening to close Pine Gap or cancel other cooperative military arrangements.
Retaliatory tariffs just aren't our best option.
if you look at the numbers, Canada's not that far from Australia. they've only instituted a tariff on like 10% of American imports
Huh? Canada retaliated dollar for dollar.
The federal government’s countermeasures will come into effect at 12:01 a.m. on March 13. The 25 per cent tariffs will hit steel products worth $12.6 billion and aluminum products worth $3 billion.
In addition, Canada is hitting another $14.2 billion worth of imported U.S. goods with fresh tariffs, totalling $29.8 billion in retaliation.
I wasnt aware new ones from yesterday. It was for $30B, though. Combined with the last set of tariffs its $60B total out of $350B of US exports to Canada
So about 17%. So let's say Canads is at a conservative 3 generous 4