<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/australia" rel="" target="" title="Australian"><span>Australian</span></a><span> goods exported to the </span><a href="https://www.9news.com.au/usa" rel="" target="" title="United States"><span>United States</span></a><span> are now subject to 10 per cent tariffs under </span><a href="https://www.9news.com.au/donald-trump" rel="" target="" title="President Donald Trump's"><span>President Donald Trump's</span></a><span> so-called </span><a href="https://www.9news.com.au/world/trumps-liberation-day-announcement-in-the-rose-garden/9a5f26c6-1396-4090-8629-b33db866dfa7" rel="" target="" title='"Liberation Day" announcement'><span>"Liberation Day" announcement</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Unlike the 25 per cent taxes imposed on steel and aluminium last month, the new duties impact all Australian imports into the US, and will therefore have a far more widespread impact across the economy.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>So how will they impact Australia? From potential interest rate cuts to the likelihood of a global economic downturn, this is what you need to know.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/donald-trump-tariffs-reciprocal-measures-what-are-they-retaliating-against-explained/c90a020c-70d4-47fa-8a42-f8954665783b" rel="" target="" title="The US says Donald Trump's new tariffs are 'reciprocal'. The facts don't back that claim up"><strong><span>The US says Donald Trump's new tariffs are 'reciprocal'. The facts don't back that claim up</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>Will Australians be hit with price rises due to the tariffs?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Not directly.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Tariffs are paid by the importer, not the exporter, so the consumers who are likely to face higher prices are Trump's own constituents: the American people.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/finance/donald-trump-tariffs-economic-impact-australia-explained/a4f2524c-612b-455a-99b3-7162e35f1485" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The US will, of course, bear the brunt of the inflation uplift," Wilsons Advisory head of investment strategy David Cassidy said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Meat and Livestock Australia (MLA), which is particularly impacted by the tariffs given Trump singled out Australia's beef exports and ban on American beef, said local shoppers needn't worry about new price rises.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"US tariffs will impact the prices paid by American families and may have flow-on impacts on the supply chain," MLA managing director Michael Crowley said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It is unlikely these changes will make a difference to retail prices here in Australia."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/donald-trump-liberation-day-anthony-albanese-responds-to-tariffs/bc61d499-8a36-4dbb-b9cf-90f2fc118bd5" rel="" target="" title="'Not the act of a friend': Prime Minister condemns Trump tariffs"><strong><span>'Not the act of a friend': Prime Minister condemns Trump tariffs</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>So what will the impact on Australia's economy be?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It's worth noting from the outset that the exact impact of the tariffs is up in the air, and will be dictated by a range of factors, including other nations' responses (particularly China's) and whether there are more taxes to be announced.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That said, similarly to the </span><a href="https://www.9news.com.au/national/donald-trump-tariffs-what-they-mean-australia-everything-need-know-explainer/6b4053af-724e-4649-a574-b73498d2fc4a" rel="" target="" title="steel and aluminium tariffs"><span>steel and aluminium tariffs</span></a><span>, the direct impacts on the Australian economy will likely be limited.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Only about 4 per cent of exported Australian goods go to the US, leaving the vast majority unimpacted.</span></div></div><div class="styles__Wrapper-sc-2o34ro-0 cmwkBV"><div class="styles__Column-sc-2o34ro-3 jJDKrX"><a href="/content/2025/04/03/09/20/the-full-list-of-trumps-reciprocal-tariffs"><img alt="US President Donald Trump today announced sweeping reciprocal tariffs for dozens of nations in a &amp;quot;Liberation Day&amp;quot; speech at the White House." sizes="(min-width: 1024px) 636px, (min-width: 768px) 396px, 100vw" src="https://imageresizer.static9.net.au/fJmcm8MqaRXpidBWPXCQ-OF3i9E=/396x223/https%3A%2F%2Fprod.static9.net.au%2Ffs%2Ff4adaefd-6caf-46d7-899f-f151e3f9bb68" srcset="https://imageresizer.static9.net.au/fJmcm8MqaRXpidBWPXCQ-OF3i9E=/396x223/https%3A%2F%2Fprod.static9.net.au%2Ffs%2Ff4adaefd-6caf-46d7-899f-f151e3f9bb68 396w, https://imageresizer.static9.net.au/x8yQRuzP2g-htvXY9q9j40uqzR8=/636x358/https%3A%2F%2Fprod.static9.net.au%2Ffs%2Ff4adaefd-6caf-46d7-899f-f151e3f9bb68 636w"/></a></div><div class="styles__Column-sc-2o34ro-3 jJDKrX"><div class="styles__Headline-sc-2o34ro-4 hpbOlz">The full list of Trump's 'reciprocal' tariffs</div><div class="styles__Button-sc-2o34ro-1 eBjlmW"><a class="styles__ButtonLink-sc-2o34ro-2 hqpklJ" href="/content/2025/04/03/09/20/the-full-list-of-trumps-reciprocal-tariffs">View Gallery</a></div></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Gold and pharmaceuticals, which are two of the top five exports to the United States, also appear to have been exempted from the tariffs, providing further reprieve for the local economy.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The biggest direct impact will be felt by the beef industry. Worth billions of dollars each year (the Red Meat Advisory Council puts the figure for 2024 at $4.16 billion), it is Australia's biggest export to the US, and simultaneously the US is the Australian beef industry's biggest market.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While exports will continue despite the tariffs, it's likely to lead to less demand for Australian meat.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Our beef industry will need to look for alternative markets to stay viable," Professor Robert Brooks from Monash Business School said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>EXPLAINED: </span></strong><a href="https://www.9news.com.au/world/donald-trump-liberation-day-tariffs-update-australian-beef-exports-singled-out/ede43fa9-35ca-488b-b465-f93c25a1f879"><strong><span>The unsettling reason Australia refuses to buy American beef</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>What about indirect impacts on the Australian economy?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This is where things start to get a bit more worrisome.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Australian stock exchange – as with plenty of other share markets – has already spent a day swimming in the red following the tariff announcement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It closed the trading day down a little more than 1.07 down on Thursday, roughly a $33 billion loss, which was actually an improvement on the more than $50 billion shed in the hours after Trump made the new taxes official.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Local industries are also worried about the potential for other nations – many of whom have been hit far more severely by the new tariffs – to look to Australia as a new or increased market for their goods now the US is a less viable option.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That could lead to them dumping a high volume of cheap produce here, undercutting local businesses.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/donald-trump-tariffs-norfolk-island-australia-export-tariffs-stock-market-finance-news/be1d5184-f7a2-492b-a6e0-77f10b02665d"><strong><span>No explanation why Norfolk Island's tariffs are nearly triple the rest of Australia's</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The federal government announced some financial support to encourage shoppers to buy Australian during last week's federal budget, and Prime Minister Anthony Albanese yesterday said anti-dumping measures will be strengthened.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Then there's the risk of a global economic downturn if Trump's tariffs are met with retaliation and a widespread trade war breaks out.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"While Australia's direct trade exposure to the US is minimal, the knock-on effects via China and broader Asian nations that have seen hefty tariffs could weigh on our export-heavy economy, especially if global demand slows and commodity prices retreat," eToro market analyst Josh Gilbert said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"For a small, open economy like Australia, any slowdown in global growth would have an impact locally."</span></div></div><div class="styles__Wrapper-sc-2o34ro-0 cmwkBV"><div class="styles__Column-sc-2o34ro-3 jJDKrX"><a href="/content/2025/04/03/09/39/trumps-liberation-day-announcement-in-the-rose-garden"><img alt="" sizes="(min-width: 1024px) 636px, (min-width: 768px) 396px, 100vw" src="https://imageresizer.static9.net.au/gbiCergZUOqlUHvSbOOF3sx1nXY=/396x223/https%3A%2F%2Fprod.static9.net.au%2Ffs%2F047e3a44-a0de-4f8b-a6d7-51c5007192cd" srcset="https://imageresizer.static9.net.au/gbiCergZUOqlUHvSbOOF3sx1nXY=/396x223/https%3A%2F%2Fprod.static9.net.au%2Ffs%2F047e3a44-a0de-4f8b-a6d7-51c5007192cd 396w, https://imageresizer.static9.net.au/4pCNUR2p72vwAPkd3aMnU4hft_g=/636x358/https%3A%2F%2Fprod.static9.net.au%2Ffs%2F047e3a44-a0de-4f8b-a6d7-51c5007192cd 636w"/></a></div><div class="styles__Column-sc-2o34ro-3 jJDKrX"><div class="styles__Headline-sc-2o34ro-4 hpbOlz">Trump's 'Liberation Day' announcement in the Rose Garden</div><div class="styles__Button-sc-2o34ro-1 eBjlmW"><a class="styles__ButtonLink-sc-2o34ro-2 hqpklJ" href="/content/2025/04/03/09/39/trumps-liberation-day-announcement-in-the-rose-garden">View Gallery</a></div></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>One particularly important economy is China, where, as our largest trading partner, a reduction in demand would hurt Australian exporters.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"What happens to growth in China will be critical," Brooks said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Any slowdown there, particularly as a result of escalating trade tensions, could have ripple effects for the Australian economy."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Some economists are worried the tariffs could go as far as to spark recessions in the next nine months.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"These policies, if sustained, would likely push the US and global economy into recession this year," JPMorgan analysts said in a note to investors.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/world/donald-trump-tariffs-heard-and-mcdonald-islands-uninhabited-antarctica-islands-liberation-day/fecf2af6-03e7-4c9b-af44-17c0f633cec3"><strong><span>Trump places tariffs on uninhabited islands off coast of Antarctica</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>Are there any potential benefits?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>There are a couple of silver linings that could emerge for Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chief among them is the potential for a free trade deal with the European Union – which has been long discussed but never signed off on – to finally be inked as both economies seek new markets for their export goods.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I think things have changed and the opportunity to have further negotiations about a free trade agreement on better terms than have been previously offered now exists," </span><a href="https://www.9news.com.au/national/donald-trump-liberation-day-anthony-albanese-responds-to-tariffs/bc61d499-8a36-4dbb-b9cf-90f2fc118bd5" rel="" target="" title="Trade Minister Don Farrell said"><span>Trade Minister Don Farrell said</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian mortgage holders will also welcome the news that traders now believe there's a better chance of more interest rate relief throughout the year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The market is now all but certain of another rate cut in May – it was previously pricing in a 79 per cent chance of the Reserve Bank reducing the cash rate in its next meeting – and is optimistic of a further three by the end of 2025, one more than previously expected.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS 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