Trump to slap tariffs; taxes on Aussie manufacturers

Trump advisor on manufacturing, Andrew Liveris

Trump manufacturing advisor, Andrew Liveris, has said that any rise on tariffs on Australian goods imported into the US, could have devastating consequences for Australian industry, according to The Australian.

Liveris’ comments come as the Trump administration may change tax arrangements that may punish US importers of Australian goods.

Ai Group chief executive Innes Willox said that any imposition of border taxes would be very damaging to Australian industry.

“Understandably, Mr Trump wants to rebuild the US economy but the imposition of penalties on imports sends all the wrong messages and will only be damaging in the long run,” Willox said.

As a way to reduce costs, American manufacturers could also push for the repeal of the Obama administration’s Clean Power Plan, which promoted the use of natural gas over coal, a change that could raise demand for Australian coal.

The possible imposition of import penalties remains the central concern for Australian manufacturers and exporters. One model under discussion for a border adjustment scheme would be a 20 per cent tax credit for exports by companies in the US, offset by a 20 per cent tariff on imports.