The ASX 200 (ASX: XJO) is down around 0.7% as investors learned about the latest decision on US tariffs.
US tariffs decided for Australia
According to various media reports, Australian exports to the US will continue to only have a 10% tariff rate.
It was confirmed to the Australian embassy in Washington DC that the 10% rate is remaining in place, according to The Guardian.
Australia’s trade minister Don Farrell said:
The White House has confirmed that no country has reciprocal tariffs lower than Australia.
However, there are some specific industry tariffs that will remain in place – 50% on steel, aluminium and copper imports.
The Australian government said it would continue to advocate for the removal of all tariffs.
For Australia’s biggest trading partner – China – US treasury secretary, Scott Bessent, told reporters the US has the “makings of a deal” with China, but that it’s not yet complete, according to The Guardian.
What about other countries?
The ASX 200 may also be impacted by what’s happening with the tariff rate for other countries.
New Zealand saw a surprise increase of its tariff rate to 15%, up from 10%. Australia may have benefited from the recent change to its policy on US beef imports.
Canada’s tariff rate is being increased to 35%, up from 25%.
South Korea managed to reach a last minute deal for tariffs to reduce to 15%, down from 25%. It’s going to invest US$350 billion in the US and buy US$100 billion of LNG and other energy.
Taiwan’s tariff rate has reduced from 32% down to 20%.
India’s tariff rate is 25% and the Japan tariff rate is 15%.
The UK tariff rate is still 10%, Vietnam’s tariff rate is 20% and the Thailand tariff rate is 19%.
Some EU goods will have a 0% tariff and other goods will have a 15% tariff.
US President Trump has already suspended the tariff exemption that allowed packages to enter the US that are worth less than US$800. This is for the whole world.
Final thoughts on the ASX 200
We’ll see how investors respond to this news in the coming weeks and whether the US decides to change any tariffs. Interestingly, Mexico has been given more time to negotiate a trade deal with the US.
But, in this volatility, there could be opportunities in some areas.
