RBA’s Hauser: Direct impact of any US tariffs on Australia likely to be limited

• Global trade war would hit overall activity
• But much depends on how China would react
• Our flexible exchange rate and independent monetary policy are powerful shock absorbers
• Impact on Australian inflation is ambiguous, could move in either direction
• Will respond in either direction, with force if needed, to meet mandate

This just mostly echoes the remarks from Bullock yesterday. Australia will be mostly indirectly affected by Trump tariffs, as a result of their close ties with China. So, it’s mostly a case of how US-China trade relations will be affected and the spillover impact will be that on Australia.

This article was written by Justin Low at www.forexlive.com.