
West Australian primary producers are facing a period of uncertainty and disruption due to the implementation of protectionist economic measures by US President Donald Trump. Trump's proposed tariffs on countries like China, as well as broader tariffs on imports, including those from Australia, have raised concerns among producers about the future of trade dynamics.
One such producer, John Griffiths, the owner of Faber Vineyard in WA's Swan Valley, had been focusing on rebuilding trade with China after the removal of Chinese tariffs on Australian wine. The removal of these tariffs led to a significant increase of over $600 million in Australian wine exports in September 2024. However, Griffiths is now cautious about the potential impact of Trump's tariffs on the Chinese economy and its repercussions on the wine industry's progress.
Mr. Griffiths is prioritizing flexibility and market diversification as part of his strategy to protect his vineyard against the uncertainty posed by potential tariffs. Additionally, Larry Jorgensen, the chief executive of Wines of WA, believes that while direct tariffs on Australian wines by the US are unlikely, there may be indirect impacts on economies like China, which are significant buyers of Australian wines. Despite these concerns, Jorgensen emphasized the importance of focusing on developing market profiles and positioning to mitigate any potential negative impacts.
In the meat industry, WAFarmers chief executive Trevor Whittington expressed concerns about the potential impact of US tariffs on Australian meat, particularly on sheep farmers who are already adjusting to the upcoming end of live exports by 2028. However, industry sources mentioned that it is currently uncertain how US tariffs could specifically affect export markets. Experts like Michael Green from the University of Sydney's US Studies Centre believe that while the possibility of tariffs on Australia cannot be ruled out, existing free trade agreements and support from the US Congress provide some level of protection for Australian trade. Additionally, supply chain analyst Medo Pournader from the University of Melbourne highlighted potential indirect impacts, such as changes in demand for Australian minerals if US tariffs on Chinese goods disrupt production. Pournader also noted that Trump's tariffs on other trade competitors could create opportunities for Australia in terms of market gains through quality materials and competitive prices.