Albo in China, Trump expands tariffs, auction market ignores no rate cut
Published: July 14, 2025
Albo in China, Trump expands tariffs, auction market ignores no rate cut
News in brief
Donald Trump has placed a 35 per cent tariffs on Canadian goods, and 30 per cent on Mexican and the European Union products. In the case of Mexico, he said the country has failed to stop the cartels and not done enough to stop the flow of fentanyl into the US.
We might not have gotten an interest rate cut last week, but that didn’t stop home buyers over the weekend with the preliminary auction clearance rate across the country staying solid, at just under 73pc.
Almost every large solar farm in Australia’s southeastern states will be forced to switch off at least one-third of the power they generate by 2027 on the back of delays to new poles and wires projects, needed to transmit the electricity.
The outlook for crop production across the country is expected to fall this financial year, with lower volumes across most products. While Northern NSW, Qld and southwestern WA have had a good start to the winter cropping season, it’s been overly dry in SA, western Victoria, southern NSW and northern WA.
The engines on Air India flight 171 briefly cut off seconds after take-off, a preliminary report into the jet’s fatal crash last month has found. The aircraft reached the necessary speed to lift off, but seconds later switches that control the flow of fuel to the jet’s two engines “transitioned” from “run” to “cut-off” position.
Fear-o-meter
Donald Trump might be whacking the world, but the United States, for now, is still a democracy. Xi Jinping might be rolling out the welcome mat for Prime Minister Anthony Albanese this week, hoping to boost trade and political relations, but China is still a one-party socialist state.
Albanese must tread a very fine line - keep close to our most important economic partner without irritating the fickle Donald Trump. At the moment, the world is a bit like a school yard, with the two biggest bullies demanding loyalty from their classmates. The kids who refuse to pick a side tend to end up with no friends.
If I was picking a long-term friend, I would still go with the US over China. Trump will be gone in three-and-a-half years and, hopefully, the world will become a bit more normal. The next 42 months should be about minimising damage from the US, rather than getting too cosy with Beijing.
Who's talking today?
"What we would advocate is broadening your exposures out of just US equities. Europe seems to be really well positioned. Yes, it will be hit by tariffs, but on the other side of the coin, they are busily spending on infrastructure and defence… That’s a positive."
It is Monday the 14th of July 2025. Prime Minister Anthony Albanese is in China, and will meet President Xi Jinping later in the week, with US trade policy, Taiwan, iron ore and tourism heading the agenda. Perhaps the toughest topic is Taiwan. The Trump Administration is pushing Australia and Japan to make clear what role they would play if the US and China went to war over Taiwan. Albanese responded yesterday saying Australia does not support "any unilateral action" on Taiwan.
Greed-o-meter
| Product or country | Tariff (pc) |
|---|---|
| Pharmaceuticals | 200 |
| Steel, aluminium | 50 |
| Copper | 50 |
| Brazil | 50 |
| Canada | 35 |
| Japan | 25 |
| South Korea | 25 |
| Philippines | 20 |
| European Union | ? |
| Australia | ? |
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The TACO – Trump Always Chickens Out – trade is real, with investors betting on exactly what tariffs Trump will implement, and what he won’t. Over the past week, he has promised imposts on several countries and products.
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Source: Truth Social