TRUMP’S TARIFF STRIKES; GAS TAX REBUFFED
Trump’s strike on modern slavery targets trade
US President Donald Trump has ordered the imposition of a tariff of up to 12.5 per cent on imported goods – including from Australia – deemed to have been produced wholly or in part with forced labour. Australia is among 60 countries targeted by the US move, which followed a four-month investigation by the US Trade Representative. The US assessed whether the countries’ failure to crack down on modern slavery practices was “unreasonable or discriminatory and burdens or restricts US commerce.” Japan, New Zealand, the UK and the European Union were also included among the 60 targeted economies. Trade Minister Don Farrell said the tariffs were unjustified, claiming that Australia took the issue of modern slavery seriously, with some of the most progressive legislation anywhere in the world.
Canada cops 50 per cent tariffs on exports to US
Three days earlier, on July 20, President Trump moved to impose a 50 per cent tariff on certain Canadian goods, claiming it was a response to discriminatory treatment of US commerce. President Trump claimed the proposed tariff would help to level the playing field for crucial imports such as cars, alcohol and dairy products. The White House said that, for example, Canada imposed certain tariffs and quotas on cars imported to Canada from the US, but not on imports from other countries. The proposed 50 per cent tariff will be imposed on a different set of Canadian products, covering from wine to hockey sticks to cement, but not on energy, potash or critical minerals.
Chalmers quashes gas tax move
Treasurer Jim Chalmers has again moved to head off an additional tax on gas exports, while emphasising the role of Australia as a reliable supplier of resource exports. In a media interview ahead of the Labor Party’s biennial national conference, the Treasurer said the Federal Government had already taken steps to extract a fairer return on natural resources. Those steps included reforms of the petroleum resource rent tax (PRRT), and current moves for a domestic gas reservation scheme. But Dr Chalmers said Australia was also conscious of its international partnerships, especially at a time when fuel security was at a premium.
Victorian unemployment rate jumps above five per cent
Australia’s rate of unemployment remained steady at 4.4 per cent in June, but the level of jobless across the nation varied widely, according to latest monthly job figures. The Australian Bureau of Statistics said that the rate of unemployment, seasonally adjusted, fell from 4.3 per cent in May to four per cent in New South Wales, but rose from 4.9 per cent to 5.1 per cent in Victoria. Meanwhile, the rate of underemployment – which records the number of people who want to work more hours – was 5.9 per cent in Western Australia but 7.3 per cent in Victoria.
Labor steps up submarine investment in SA
While the AUKUS defence partnership is still being publicly debated, the Albanese Labor Government is escalating its investment in nuclear-powered submarine construction in Adelaide. Deputy Prime Minister Richard Marles and Finance Minister Katy Gallagher announced a $4.6 billion contribution to the submarine construction yard in Osborne, bringing total government investment to date to $8.5 billion. The facility is being developed to deliver conventionally armed, nuclear-powered submarine capability under AUKUS. They said the broader submarine project was expected to create almost 10,000 jobs in total in South Australia alone.
Wholesale electricity prices falling in Australia - global energy agency
A global energy report says that wholesale electricity prices in Australia in the first half of 2026 were about 45 per cent lower than in the previous year, as the nation avoided the effects of higher gas prices. In its Electricity Mid-Year Update, the International Energy Agency said strong generation from renewables and rapidly expanding battery storage capacity in Australia helped reduce reliance on gas-fired plants during peak electricity demand periods. The Paris-based agency said that the Strait of Hormuz crisis had driven spikes in LNG (liquefied natural gas) prices, translating into higher costs for gas-fired electricity generation, and pushing up wholesale electricity prices in several regions. It reported that in the second quarter of 2026, average spot electricity prices in the European Union and Japan increased by more than 30 per cent year-on-year. The agency added that a rebound in gas-fired generation was expected in 2027, subject to geopolitical uncertainties.