Donald Trump's Impact On Australia

“Globalisation will make our societies more creative and prosperous, but also more vulnerable” (G. Robertson). The Silk Road connected China to Rome and carried goods and ideas for centuries allowing the first steps of globalisation to be born (Britannica, 2018). Globalisation has linked the globe together ever since, allowing for significant economic growth. Australia is geographically distant from the rest of the developed world thus making international trade imperative for its continuing development. The USA is Australia’s third biggest trade partner and second biggest importer, showing that the importance America holds for Australia’s economic future is crucial (S. Kimmorley, 2014). Donald Trump was elected as President of the USA in early

Donald Trump’s administration has attacked China for being a currency manipulator, allowing Chinese industries to have a comparative advantage over American businesses (2). The tension between the American and Chinese government has escalated, resulting in Donald Trump placing a 45% tariff on all Chinese goods imported into the country (3). The pressure could consequently result in the formation of a trade war which would be disastrous for Australia and their First People

The TPP is multilateral trade agreement involving; Australia, America and other countries in the Asia- Pacific region (5). Before America revoked its involvement, the agreement was the largest in the world and involved 40% of the planets wealth (5). This agreement removed all tariffs of trade between the signing countries, leading to a boost in exports and potential economic growth (2). It is clear, without this agreement International trade would suffer, potentially costing the signatory countries jobs and prosperity. Australia would suffer greatly if a replacement alliance can’t be agreed, especially if China and America enter the projected trade war. The TPP would have initially helped large corporations and people who earn over $85 000 a year, unfortunately this would have excluded most of Australia’s First People (5). Approximately half of Australia’s First People earn less that $65 000, this shows that in the short term the TPP would have been ineffective at reducing the social and health gaps between native Australians and the rest of the country (11). Fortunately, the TPP would have increased the economy for Australia, allowing the country to enter a surplus (6). A surplus would have allowed the Australian Government to spend more on local initiatives, most importantly providing support for Australia’s First