The last time the USA imposed large trade tariffs (taxes on imports), the world plunged into the Great Depression and then WW2 broke out. But don’t worry, this article is about to take a more positive swing. You see, the last time the USA imposed tariffs, the world responded in a trade war. But this time, the response is different; in fact tomorrow, Australia and 10 other countries are signing the Trans-Pacific Partnership II. As the USA look to protectionist policies, the rest of the world is looking toward liberal and open-minded business policy. Even China, has announced plans to reduce red tape to attract foreign investment in education, healthcare, aged care and natural gas. And for Australia, this is great news:
- We have the best healthcare system in the world
- Our 4th biggest export is natural gas
- China is our overall biggest importer of all goods and services.
The playing field has been set, Australia is in prime position and the USA have rocked up to the wrong field. There may be some volatility along the way, but that is just how markets work.