Trump tariffs : Cyclone Trump has reached the Australian mainland.
After wreaking havoc in Canada, Mexico, Ukraine, and the European Union in recent weeks, it has now arrived in Australia.
The impact is severe, with Australian beef farmers expected to bear the brunt of the damage.
But it could have been far worse.
Our Asian neighbors have taken an even heavier blow in this dramatic upheaval of the global trading system, with China, South Korea, Japan, Taiwan, Vietnam, Malaysia, and Thailand among the hardest hit.
This, in turn, will affect Australia—our key trading partners have just seen the cost of their exports to one of the world’s largest markets, the US, surge by 24 to 46 percent.
As President Trump reshapes the global order, alliances and agreements are shifting.
China, South Korea, and Japan are now exploring a possible trilateral trade alliance—an unexpected turn for three of America’s largest trading partners, considering an agreement without the US.
In the process, Trump may be driving many nations closer to Beijing—Washington’s chief strategic rival.
Beef with Aussie imports
Australia will be subject to the US’s new minimum “base” tariff, meaning all Australian exports to the US will now cost Americans 10% more—the same rate imposed on the UK.
In Trump’s tariff overhaul, 10% appears to be the standard rate for countries not classified as tariff violators.
Australia’s trade surplus with the US likely played a role in securing the lowest tariff penalty. However, this raises a key question: aside from Australia’s strategic value to the US, why should a country with a trade surplus face any penalty at all?
This new tariff system is just the beginning of a much larger process.
Trump’s first term—and the early months of his second—have made one thing clear: in his world, everything is up for negotiation.
Announcing the changes from the White House, Trump reiterated his belief that countries worldwide are trying to “rip off” Americans.
He specifically mentioned Australia, particularly regarding beef exports to the US.
Trump stated that, in many cases, “the friend is worse than the foe” when it comes to tariffs.
Despite Australia’s intense lobbying efforts in recent weeks, new attempts will now begin immediately to negotiate a reduction of the 10% tariff—ideally to zero.
At the heart of the current situation lies the psychology of Donald Trump.
Tariffs in Trump’s sights for decades
This new trade order is rooted in President Trump’s core belief: that while the US has built one of the world’s largest and most successful economies, other nations have long exploited that success, diminishing American wealth.
He sees these tariffs as a way to generate revenue to reduce US debt.
Trump contends that, rather than paying these tariffs, companies operating in countries like Japan or Malaysia should relocate their factories to the US—boosting American jobs and revitalizing the nation’s struggling manufacturing sector.
Trump’s rhetoric during the announcement of the tariffs, which he called “Liberation Day,” offered a glimpse into his perspective.
He claimed that foreign leaders had “stolen our jobs,” that the US and its taxpayers had been “ripped off” for over 50 years, and that this was one of the most significant days in American history.
According to Trump, other countries had used non-monetary barriers to “decimate” US industries while turning themselves into “filthy pollution havens.”
Although rising prices may face resistance from Americans, Trump will rely on his political influence to persuade them that tariffs are the right path forward.
He argued that the current trading system left Americans vulnerable, citing the nation’s reliance on imported pharmaceuticals as a potential wartime risk.
The underlying message: by enforcing this tariff regime, the US would strengthen its domestic supply chains, particularly in critical industries like pharmaceuticals.
Trump frames this as a step toward prying open foreign markets and ushering in what he calls “the golden age of America.”
Now it’s our turn to prosper he said.
In his White House address, President Trump illustrated his perspective with a specific example: 81% of cars sold in South Korea are manufactured domestically, while Toyota exports 1 million cars to the US—but American automaker General Motors sells almost none in South Korea.
For decades, Trump has been determined to dismantle the global tariff system if given the chance. Now, holding perhaps more power than any president in history, he is moving forward with that agenda.
One hallmark of Trump’s approach is that his policies—tariffs included—were clearly outlined during his election campaign.
During his announcement, he displayed a chart comparing the tariffs other nations impose on the US with the new rates America would apply in response. However, he referred to these new tariffs as “discounts,” emphasizing that the US had chosen not to impose full retaliatory rates.
The chart listed China as imposing an effective 67% tariff on US goods, with the US responding at 34%. Other figures included:
- European Union: 39% (US to impose 20%)
- Vietnam: 90% (46%)
- Taiwan: 64% (32%)
- Japan: 46% (24%)
- India: 52% (26%)
- South Korea: 50% (25%)
- Thailand: 72% (36%)
- Switzerland: 61% (31%)
- Indonesia: 64% (32%)
- Malaysia: 47% (24%)
- UK: 10% (10%)
- South Africa: 60% (30%)
Trump’s message was clear: the US is no longer willing to tolerate what he sees as unfair trade practices.
Burgers, vegetables and car parts up
Donald Trump is a rare figure in modern politics—he tends to follow through on what he says he’ll do.
He’s a true ideologue, with a firm belief in his own vision and enough self-confidence to push forward without letting political pressures sway him—at least so far.
However, that confidence will soon face serious challenges.
While many middle- and working-class Americans appreciate Trump’s tough talk, the US financial markets are uneasy about his approach. Wall Street, in particular, is unsettled by his aggressive tariff strategy, which injects significant uncertainty into the global economy.
Questions now loom: How will China respond to the 34% tariffs just placed on its exports? Will the European Union quietly accept the 20% tariffs on its goods? Is this the start of a full-blown trade war?
As financial markets waver, American consumers will also start feeling the strain.
In the coming weeks, higher prices will hit home—whether it’s the cost of a McDonald’s burger rising because Australian beef is now 10% more expensive, or the price of fresh produce from Mexico and auto parts from Canada climbing sharply.
How much will this trouble Trump? He’s not facing another election—though he has hinted at the possibility of seeking a third term, which would require a constitutional change.
By nature, Trump is a “crash-through” politician.
The question now is whether he will pause to gauge the growing discontent from financial markets, consumers, allies, and constitutional limits—or whether he will try to bulldoze through all of it.
If he chooses the latter, the world could be in for a turbulent few years.
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