AFF Member Stock Discussion

[SydneySwan]

ASX not keen on Trumponomics - market down around 2%. Australia getting no discount with a 10% tariff. If we increase tariffs to 20% then do we get the Trump 50% discount?

Asian markets will be a bloodbath with most countries getting very high tariffs. Japan - 24%, Taiwan - 32%, Vietnam - 46%, China - 34%, Korea - 25%, etc.

 

[drron]

Even Dr Chalmers knows that the worst retaliation to tariffs is to reciprocate. Modelling says GDP down 0.1% with US imposing tariffs but 0.4% if reciprocated.
Nothing stopping individuals or businesses from cutting supply from the US.

 

[prozac]

Well the 10% Tariff on Australian goods may set the cat among the pigeons. I'm an importer, and I'm fully expecting (and encouraging) Australia to slam 10% tariffs on all yank goods moving forward - at least until orange man is dragged out of the oval office...

We have free trade agreements with alot of other nations, so its time to slam the door shut on these guys until they sort out their mess. Plenty of good imports from the UK, Korea, China, Japan that remain duty free, and maybe its time to Fast Track FTAs with Italy and Germany for good measure.

Why would Australia slap a 10% tariff on goods from US? Trump specifically said the US tariff was in response to the 10% GST we apply to all goods (and services) sold here. We might not like it but it is like for like.

 

[Quickstatus]

10% change in prices can be easily mopped up by floating exchange rates.
I suspect a lot of importers will be banging on the Australian port of entry doors with their excess stock.

 

[Mr_Orange]

Why would Australia slap a 10% tariff on goods from US? Trump specifically said the US tariff was in response to the 10% GST we apply to all goods (and services) sold here. We might not like it but it is like for like.

Thank you Gerry "I'm a whinger" Harvey!

 

[muppet]

Why would Australia slap a 10% tariff on goods from US? Trump specifically said the US tariff was in response to the 10% GST we apply to all goods (and services) sold here. We might not like it but it is like for like.

Ahh you know the US applies sales tax to Australian imports at the retail sales point too right? They’re imposed by states and often then loaded up with additional county and city sales taxes.

Completely agree that reciprocating is not in Australia’s interest, but it isn’t like for like.

 

[prozac]

Ahh you know the US applies sales tax to Australian imports at the retail sales point too right? They’re imposed by states and often then loaded up with additional county and city sales taxes.

And this is applied at point of import? This is why one leader should pick up the phone and talk with the other.

 

[muppet]

And this is applied at point of import? This is why one leader should pick up the phone and talk with the other.

No, point of sale.

But impact is the same, Aus importers get an input credit for GST paid when they on-sell the goods to the final consumer. Only the final consumer ends up paying GST, same as in US with sales taxes.

 

[jrfsp]

And this is applied at point of import? This is why one leader should pick up the phone and talk with the other.

I dont know that Don is to be reasoned with

 

[andye]

Well the 10% Tariff on Australian goods may set the cat among the pigeons. I'm an importer, and I'm fully expecting (and encouraging) Australia to slam 10% tariffs on all yank goods moving forward -

We have free trade agreements with alot of other nations, so its time to slam the door shut on these guys until they sort out their mess. Plenty of good imports from the UK, Korea, China, Japan that remain duty free, and maybe its time to Fast Track FTAs with Italy and Germany for good measure.

I'd be surprised if we levied tariffs on US goods. The last thing any political party wants right now is pressure on domestic inflation

 

[andye]

I dont know that Don is to be reasoned with

Take the example of beef which Trump quoted. Presumably US beef is banned here for biosecurity reasons. But the US can't produce enough beef for domestic consumption so no reason to export to us even if there were Australians wanting New York steaks sourced from New York

 

[SYD]

I'd be surprised if we levied tariffs on US goods. The last thing any political party wants right now is pressure on domestic inflation

Take the example of beef which Trump quoted. Presumably US beef is banned here for biosecurity reasons. But the US can't produce enough beef for domestic consumption so no reason to export to us even if there were Australians wanting New York steaks sourced from New York

and increasing the price of hamburger would be a major contributor!

Meanwhile, I’m pondering stocks that are now better value and less exposed to the US market….

 

[moa999]

I'd be surprised if we levied tariffs on US goods. The last thing any political party wants right now is pressure on domestic inflation

One could retaliate by only applying tariffs where there are similarly priced near identical goods available from other countries.

 

[I love to travel]

Well at 1.1% dip today is quite modest. Whether it is calm before the storm remains to be seen. Cashed up but not buying yet

 

[SydneySwan]

Well at 1.1% dip today is quite modest. Whether it is calm before the storm remains to be seen. Cashed up but not buying yet

That's the problem - is this just a dip or the beginning of a long, probably slow, correction?

 

[drron]

Though there almost certainly some sections of the market that probably won't fall. gold in particular. Up $US85 this week. Our producers are raking it in.

 

[MikeG]

One could retaliate by only applying tariffs where there are similarly priced near identical goods available from other countries.

That’s how NZ does its tariffs. Or rather they have tariffs on everything and you can get exemptions for things not made in NZ. Eg ferrari exhausts are duty free in NZ, but no others are…

 

[MARTINE]

I suppose one way to redirect the $$ away from US is buy Airbus ditch Boeing (pity about the lead time though). Agree we need better Eurotrade agreements - diplomacy and our past relationship w US will be meaningless for 4 years.

 

[prozac]

I suppose one way to redirect the $$ away from US is buy Airbus ditch Boeing (pity about the lead time though). Agree we need better Eurotrade agreements - diplomacy and our past relationship w US will be meaningless for 4 years.

Oh I don't know. In the past Europe has not been a good trade partner.
My belief is you stick with your US trade and endeavour through discussion to establish better terms. Obviously if you have publicly insulted POTUS it might be difficult to get a call through. Shows the importance of maintaning cordial relations when you feel like big-noting yourself.

 

[cambriamarsh]

Why would Australia slap a 10% tariff on goods from US? Trump specifically said the US tariff was in response to the 10% GST we apply to all goods (and services) sold here. We might not like it but it is like for like.

GST is not a tarrif