"The announcement that the US Administration intends to increase the base global tariff rate from 10% to 15% or even 20% is worrying news for Australian exporters," said Innes Willox, Chief Executive of the national employer association Australian Industry Group.
"The current base rate of 10% hasn't as yet been a significant impost on Australian exports, as they are competing with the world similarly faced with 10%, so the playing field hasn't changed. The increase in tariff from 25% to 50% for metals and derivatives is a cautionary tale, and we should fear any increase on the 10% tariff that is currently under consideration in Washington.
"Reports of a 200% tariff on pharmaceuticals raises many questions, particularly on what is in scope. Such a tariff would be deeply damaging to a sector that has been an Australian economic success story.
"Various international agreements, such as the Nairobi Protocol that prohibits tariffs being placed on products specifically designed for disabled persons appear to be being honored in this chaotic process and speaks to the importance of protecting vulnerable members of society, who rely on the outputs of a globalised industry.
"Australia's integration with global supply chains means that, independent of America's tariff announcements, the uncertainty being experienced by customers and suppliers is significantly damaging confidence and suppressing investment in Australia by both local and international entities," Mr Willox said.
