Donald Trump’s trade war continues to sour Australian consumer confidence
Donald Trump’s trade war continues to sour Australian consumer confidence as the US President presses ahead with plans to impose tariffs on semiconductor and pharmaceutical imports.
The latest ANZ-Roy Morgan survey on Tuesday revealed Australian consumer confidence slumped last week, which it said likely reflected the more pessimistic global backdrop following the US tariff announcement on April 3.
ANZ economist Sophia Angala pointed to Reserve Bank governor Michele Bullock’s recent speech where she said the central bank was focusing on how global uncertainty could impact household and business decisions domestically.
It expects the RBA to cut the cash rate by 25 basis points at each of its May, July and August meetings this year.
The RBA warned in its minutes from the April meeting, also published on Tuesday, that a big fall in Australia’s exchange rate or major supply chain disruptions would restart inflation.
It comes as the US Commerce Department overnight said it had begun investigating the impact on national security of “imports of semiconductors and semiconductor manufacturing equipment” as well as “pharmaceuticals and pharmaceutical ingredients, including finished drug products.
The Westpac-Melbourne Institute consumer sentiment index last week also revealed deepening unease about developments abroad.
Sentiment was 10 per cent lower among those surveyed after Mr Trump announced his so-called reciprocal tariffs, compared with those surveyed prior.
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