ABC Statewide Drive – The consequences of Trump’s tariffs on the global economy
I joined Jess McGuire on ABC Radio’s Statewide Drive yesterday on ‘Liberation Day’, to discuss the consequences of Trump’s tariffs on the global economy.
We took a step back in time to explore the similarities between the 1930 Smoot-Hawley Tariff Act and Trump’s newly announced tariffs. Given the striking similarities of these policies, we explored the consequences of the 1930s tariffs and considered the potential parallels for today’s global economy such as slowing global trade, slowing global growth, and the risk of recession.
But it’s not all bad news. There could be some advantages for Australian businesses and consumers. Companies may experience an uptick in sales due to consumers boycotting U.S. products and buying locally. Chinese imports may also be cheaper due to them rerouting sales from the U.S. into Australia – which in turn could help to drive inflation down or lead the Reserve Bank of Australia (RBA) to announce another interest rate cut. These tariffs could also encourage local production which would benefit Australia in the long term.
In this episode we also touched on why gold prices are surging and if it is a smart investment.
Tune into my segment from 1:44 – 1:54 to find out more.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
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