Clive Palmer: Australia must tariff iron ore to China

Via the AFR:

China has slapped a ban on Australia’s biggest grain exporter – a co-operative with about 4000 farmer members – after claims customs authorities found pests in a shipment of barley.

China customs suspended barley imports from CBH, based in Western Australia and run by former BHP iron ore boss Jimmy Wilson, on Tuesday.

The ban, which comes on top of huge tariffs on Australian barley imports imposed in May, was publicised on a official WeChat account.

Clive Palmer last night floated an idea first proposed by LVO in May (here and here), Australia should tariff iron ore to China every time it raises the trade war stakes, via SkyNews:

If China tried to source dirt elsewhere then the price would skyrocket.

David Llewellyn-Smith
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Comments

  1. Display NameMEMBER

    I dont think there is any mileage threatening to put a tariff on iron ore even behind closed doors. Put it on and then have the discussion behind closed doors about how it might be removed. Call their bluff.

  2. We are screwed long-term either way…China is going to build out Africa now no matter what. So our choice is raise prices/restrict volumes now (and increase profits) or don’t. We should do it.

    Adding a tariff would see the money flow to the Gov. Restricting volumes would enrich BHP/RIO/FMG. Use tariffs, stick it in a Sov fund, invested OS to ease the currency.

  3. The tariff idea may have unintended consequences. Would not increasing the cost to China make less attractive deposits more attractive to invest in and mine.

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