Tariff tracker, May 4: ‘Balanced’ trade advice from a billionaire, caution from Australia

In the US

Berkshire Hathaway CEO and arguably one of the most famous investors of the world, Warren Buffett, had some advice for the US just before he announced his retirement.

“Trade should not be a weapon,” Buffett said on Saturday, at Berkshire Hathaway’s shareholder meeting. “I do think that the more prosperous the rest of the world becomes, it won’t be at our expense, the more prosperous we’ll become, and the safer we’ll feel, and your children will feel someday.”

He added, “You can make some very good arguments for the fact that balanced trade is good for the world. There is no question that trade can be an act of war.”

Trump’s argument has been that “free trade” so far has enriched other countries at the cost of the US, which, with its easy import rules, has suffered a loss of manufacturing abilities and jobs.

Around the world

Trump’s tariffs echoed down under, as Australia’s newly elected government said tackling the fallout of the China-US trade war would be a priority. Treasurer Jim Chalmers said on ABC’s TV show Insiders, “We know that the direct impact on us from the US tariffs is manageable and relatively modest… But there is a huge downside risk in the global economy. I think what’s happening, particularly between the US and China, does cast a dark shadow over the global economy.”

Trump’s shadow helped flip the elections for Australia’s Labor Party, as voters shunned conservative leader Peter Dutton, whose campaign talking points had been similar to the US President’s.

Meanwhile, the European Union is looking to increase cooperation with a bloc of countries that includes Australia, Japan and 10 others to sidestep the uncertainties unleashed by tariffs and other Trump policies, the Financial Times reported. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK and Vietnam.

Tariffs impact in China

The China Import and Export Fair, or the Canton Fair, gets over on May 5. Being held since 1957, in spring and autumn, it is China’s largest international trade fair. The website of the government-organised event says, “Canton Fair is hailed as China’s No.1 Fair and the barometer of China’s foreign trade.”

Over this edition, the US tariffs loom large. The South China Morning Post reported how US buyers were far fewer this year, and businesses were pitching hard to buyers from other countries, whom they have traditionally not had to woo as the Americans put in large and lucrative orders.