Key Points
- White House aides have drafted a plan that would place 20 per cent tariffs on most goods imported into the US, according to reports.
- Anthony Albanese has vowed not to compromise Australian trading standards for the US.
- Trump will unveil his long-awaited global tariff plan on Thursday.
White House aides have drafted plans for 20 per cent tariffs on most goods imported to the United States, according to the Washington Post, as US President Donald Trump prepares to announce trade barriers that have businesses and consumers on edge about the prospect of an escalating global trade war.
The news comes after Anthony Albanese told reporters on Tuesday that Australia would not change its trading rules around products such as US beef, pork, poultry, and drugs, in response to Trump’s complaints that they were causing trading barriers.
“The idea that we would weaken biosecurity laws is really… as my mum would say, cutting off your nose to spite your face,” Albanese said.
“You undermine our biosecurity system. Not on my watch. On my watch, our biosecurity system is essential.”
In a rare moment of unity amid an intensifying election campaign, Opposition Leader Peter Dutton said he agreed with Albanese’s stance.
“I agree with the prime minister’s position. I’m not going to compromise issues of national significance and importance,” Dutton said.
Trump has for weeks flagged April 2 — which he refers to as “Liberation Day” — as the deadline by which the US will impose an array of new tariffs that could upend the global trade system, but has provided few details.
He said on Sunday that reciprocal tariffs will target all countries that impose duties on US goods, and the White House said on Monday that any country that has “mistreated” the US should expect to receive a tariff.
Trump also says a 25 per cent tariff on car imports will take effect on April 3.
Trump is due to unveil his tariff plan at an event in the Rose Garden at 4pm on Wednesday local time, which is 7 am Australian Eastern Daylight Time (AEDT) on Thursday.
White House officials say no final decision has been made about the size, scope, and target of the tariffs.
Factories around the world, from Japan to the United Kingdom to the United States, had an activity slump in March as businesses braced for Trump’s tariffs, although some registered a bounce in the race to get goods to consumers before the new measures hit. Source: AP / Jae C. Hong/AP
The White House said on Tuesday that reciprocal tariffs that Trump will announce on April 2 will go into effect immediately, and car tariffs will proceed as scheduled on April 3.
According to the Washington Post, aides are considering a plan that would raise duties on products by about 20 per cent from nearly every country, rather than the more targeted approaches that have also been considered.
The administration anticipates the new duties could raise more than $9.6 trillion ($US6 trillion) in revenue that could be sent on to US citizens as a rebate, the paper reported.
A White House aide said any report ahead of tomorrow’s event is “mere speculation”.
The Republican president has already imposed tariffs on aluminium and steel imports and has increased duties on all goods from China, raising tensions with the country’s largest trading partners.
Canada has vowed to respond with tariffs of its own, and US companies say a “Buy Canadian” movement is already making it harder for their products to reach that country’s shelves.
Other countries have threatened countermeasures as well.
Signs are already emerging that the US economy is losing momentum which some experts argue is due, in part, to uncertainty fostered by Trump’s chaotic approach to economic policy making.
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