Part 2/8:
Trump's decision maintains Australia at the lowest baseline tariff rate of 10%. This is notably lower compared to other allied nations like Canada, which faces tariffs increasing from 25% to 35%, and New Zealand, now subjected to 15% tariffs. The United Kingdom, similarly, remains at the 10% baseline.
However, this relief does not mean Australian exports are free from taxation. The US already imposes a hefty 50% tariff on steel and aluminium imports, key Australian exports. What's more, despite the free trade agreement in place for over 20 years, Australia continues to endure this baseline tariff of 10%, highlighting that the deal hasn't eliminated tariffs altogether.