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The Trump administration announced on Friday, Australian time, that Australia would be subject to the baseline 10% tariff.
The result was positive news, reflecting that Australia is one of the few countries with a large deficit to the USA, importing more than double the goods and services we export to the US.
Australia also has a Free Trade Agreement (FTA) with the US that has been in operation since 2005.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.