Australia news live: PM ‘very happy' to meet Trump; Exports at risk of tumbling $30b; Trump pushes for ceasefire in Gaza
Australia is headed for a $27 billion collapse in income from two of its biggest exports – liquefied gas and iron ore – as Donald Trump's trade war with China deepens fears for the global economy and stifles demand for commodities.
The outlook for some of Australia's largest mining and energy companies has deteriorated since April, when the United States imposed across-the-board tariffs at much higher rates than many had been expecting, leading to increased uncertainty and lower global growth forecasts.
Prices for Australian cargoes of liquefied natural gas in Asia have fallen from record levels. Credit: Bloomberg
While Trump gave Australia the minimum baseline tariff rate of 10 per cent, the fallout for the country is expected to be wider-reaching as the biggest Asian buyers of Australia's natural resources, particularly China, face much higher US tariffs amid an already sluggish time for their economies.
'Rising trade barriers – and uncertainty over how high these barriers will settle – have disrupted trade between the US and its major partners and caused businesses and consumers to adopt a 'wait-and-see' approach,' the Department of Industry, Science and Resources says in its latest export forecast report, to be released on Monday.
'The associated uncertainty is likely to impinge on world commodity demand, as the nations that Australia supplies are impacted.'
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