Investment outlook Q&A - Tariff man & Aust exports, the RBA, $A & gold
The key points are:
Trump’s tariff war has potentially another 6-9 months to go at least. This poses an ongoing threat to shares, but their relative resilience so far risks emboldening Trump to do even more.
Even if Australian exports are not exempted from US tariffs the direct economic impact will be minor eg, steel and aluminium exports to the US are just 0.03% of Aust GDP.
The RBA is expected to start cutting interest rates next week and trade war uncertainty adds to the case to cut.
It could take till 2032 before Australian real wages get back to 2020 levels. Decent economic reforms could speed this.