Betashares chief economist David Bassanese said President Trump’s 12.5% tariff on Australia—imposed citing Canberra’s alleged failure to enforce a ban on goods made with forced labor—is "absurd" and appears to be a thin pretext to replace tariffs struck down by the US Supreme Court earlier this year. He warned the levy will add to US price pressure at a time when earlier tariff-driven inflation was only beginning to ease and said it raises the risk of the Federal Reserve tightening policy later

Betashares chief economist David Bassanese said President Trump’s 12.5% tariff on Australia—imposed citing Canberra’s alleged failure to enforce a ban on goods made with forced labor—is "absurd" and appears to be a thin pretext to replace tariffs struck down by the US Supreme Court earlier this year. He warned the levy will add to US price pressure at a time when earlier tariff-driven inflation was only beginning to ease and said it raises the risk of the Federal Reserve tightening policy later this year.