Tasmanian farmers are bracing for the potential impact of US President-elect Donald Trump’s proposed tariffs, with industry leaders warning it could stifle the state’s agricultural exports.
The United States is Tasmania’s second-largest trading partner behind China, with exports valued at $595.6 million in 2022-23.
Around 18% of the state’s agri-food exports currently go to the US, second to China accounting for 36%.
TasFarmers President Ian Sauer says the tariffs, which could include 10-20% on imports from Australia, are worrying for the state’s agricultural sector.
He gave the example of subsidised European vegetable producers potentially flooding the market and undercutting local growers on price.
“Our trade imbalance will become very large and those policies, of course, will mean that many of the industries that we’re in now won’t be particularly profitable,” he said.
“I think we’ve just got to wait, and we’re going to have to hope our relationship with America is strong enough to be able to negotiate our way through.”
Independent economist Saul Eslake said the average American would spend $2600 more a year on the basics with Trump’s tariffs.
“Ultimately the burden of tariffs are borne by consumers,” he said.
“People think it is something foreigners pay but it is completely wrong.”
