House of Assembly Fifty-Fifth Parliament, First Session (55-1) 55 1 Parliament of South Australia House of Assembly published Question Time Question Time US Tariff Announcement US Tariff Announcement The Hon. V.A. TARZIA House of Assembly Hartley Leader of the Opposition US Tariff Announcement The Hon. V.A. TARZIA (Hartley—Leader of the Opposition) (14:04): My question is to the Premier. What impact will today's US tariff announcement have on South Australian jobs and the South Australian economy? With your leave, sir, and that of the house, I will explain. Leave granted. The Hon. V.A. TARZIA House of Assembly Hartley Leader of the Opposition The Hon. V.A. TARZIA: Just over six months ago, the Minister for Trade said, and I quote: South Australia's beef industry is a vital contributor to our state’s economic growth and is fundamental in the economic activity of our regions. South Australian beef export markets were valued at over $400 million last year, and the United States is South Australia’s second largest merchandise export market, valued at more than $2 billion just over six months ago. The Hon. P.B. MALINAUSKAS House of Assembly Croydon Premier The Hon. P.B. MALINAUSKAS (Croydon—Premier) (14:04): I thank the Leader of the Opposition for his important question on a significant day in terms of global economic affairs. I have taken the opportunity throughout the course of this morning to speak to a number of significant players, both in the export industry itself and also with my federal government colleagues, not least of whom was the federal Treasurer. The first thing is this—let's just get some facts out on the table in this forum: there was speculation early this morning about the possibility of a beef export ban on the back of references to the biosecurity arrangements that Australia maintains and will not change. There is no beef export ban, is the advice that I have received. Instead, there is the position of the 10 per cent tariff that we see being applied more broadly across all products going to the US. That 10 per cent beef tariff will have implications, but it is far too early to say exactly how that plays out in practice. The Leader of the Opposition referenced a number of statistics, which I am in no position to dispute. In the numbers that I was in receipt of this morning for the 12 months most recent, we export over $300 million worth of beef but also over $300 million worth of lamb too. We should contemplate the implications for lamb, which are no different to beef, amongst other goods. I spoke this morning also to Darren Thomas. I was very grateful to have a couple of chats with Darren, the longer one of which was after the conclusion of President Trump's media call. Mr Thomas and I had the opportunity to engage with leaders within his enterprise, which of course is very substantial. His advice to me—and I discussed the ability to be able to share this publicly—is there is a lot that needs to transpire before a full picture will form on the implications of the 10 per cent tariff on Australian beef. It is true to say that obviously there are tariff differentials that the Trump administration has applied to different markets. In respect of some products and some goods, not necessarily beef, the tariff on Australian products is a lot less than other jurisdictions. That will, over time, result in a calibration of the market in terms of where the US buys its beef from and then, in turn, what that implication is for us. Take, for instance, a set of circumstances where China or Japan, in turn, applies a reciprocal tariff arrangement on the US. Given that China, from memory, is 34 per cent and Japan is 26 per cent, that then may result in a set of circumstances where the Chinese or Japanese markets are highly attracted to Australian product. So there is a bit to wash through the system before a full picture will emerge. There is, however, confidence within the sector that Australian beef being of the quality that it is, notwithstanding the 10 per cent tariff, still will have the ability to be able to compete in the US market, given other conditions. So we will have to assess the situation. I don't think there is any doubt, though, that the Trump tariff policy is not good for the global economy. Any open trading economy such as ours will face implications of this, but it would be wrong, and I think premature, to immediately assume that there is all negative in the absence of opportunity in the announcement made by the Trump administration. Our job is to ameliorate the pain where we can and focus on the opportunity where it exists.