Part 3/8:
Although Australia is fortunate to have a relatively moderate 10% rate compared to other nations, this development still constitutes bad news. As Laura, a trade analyst, emphasized, the key takeaway is that retaliating against the tariff may not be the best strategy. Instead, the recommended response, supported by recent modeling, is for Australia to remove existing tariffs—particularly those considered "nuisance tariffs." These tariffs offer little revenue and impose unnecessary compliance costs on businesses, ultimately raising prices for consumers.