EDITORIAL: Lecturing Americans on tariffs a fool’s errand
To take Jim Chalmers at his word, Australia has not given up on fighting for a better tariff deal from the Americans, despite what appearances might suggest.
If that’s the case, he is employing a curious tactic in that fight by continuing to criticise and castigate the very man Australia needs to win over.
Doing the breakfast show rounds on Thursday, Mr Chalmers didn’t hold back his thoughts as to how terribly stupid he believed US President Donald Trump’s tariff war on everything was.
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By continuing you agree to our Terms and Privacy Policy.“We think these tariffs are bad for the American economy, certainly bad for the global economy,” Dr Chalmers lectured, a few breaths after boasting the Australia’s inflation rate was now lower than that of the US.
Australia can’t sermonise its way out of this.
And despite Mr Trump’s recent announcement that countries which had failed to lock in a special deal with the US — a group of feet-dragging dawdlers which includes Australia — could expect to be hit with tariffs of between 15 and 20 per cent as a minimum, the Treasurer said he still expected Australian exports to the US would be levied at 10 per cent.
“These tariff announcements are a moving feast, but our understanding, our expectation is we get the baseline,” Dr Chalmers said.
“We think that the best outcome is zero because these tariffs are an act of economic self-harm.
“We see inflation is going up in the US. Earlier in the year they had slowing growth, interest rates on hold again in the US overnight, they’ve got higher interest rates than we do in Australia.”
What is to be gained by admonishing a President who has made extremely clear he despises criticism?
Other nations have taken a more solicitous route.
Mr Trump has just concluded a trip to the UK, where he spoke warmly of his friendship with Prime Minister Sir Keir Starmer.
Mr Starmer was one of the early movers among world leaders, and his swift manoeuvre to lock in a 10 per cent deal with Mr Trump back in May know looks like a masterstroke.
Meanwhile, Australia is still playing silly buggers on the sidelines.
And the fact is, despite the conventional wisdom that tariffs are bad business, the US economy has weathered the storm well. That may well change in coming months, but for now a triumphant Mr Trump sees only victory in his approach.
That means harangues from Dr Chalmers and Prime Minister Anthony Albanese about the US’s “act of economic self-harm” will at best carry zero weight.
At worst, they risk attracting the President’s ire.
Five months after Mr Trump first announced his intention to introduce heavy tariffs on imports into the US, Australians are still in the dark as to what Australia’s plan is to deal with this threat.
Australia can’t sermonise its way out of this.
It’s time for Dr Chalmers and Mr Albanese to get down off their soapboxes and work on cutting a deal.
