Advanced Search

Share Coverage



Category: Globalisation - Economy / Tourism

Trump policies could hit Tasmanian business, economist says

Thursday, 10 Nov 2016 18:33:22 | Peta Carlyon

Tasmania could become less popular for Chinese tourists. (ABC News: Janek Frankowski)

A leading Tasmanian economist has warned the change in the US presidency could have a flow-on effect for the state's export and tourism markets.

Saul Eslake said if President-elect Donald Trump made good on his promise to impose trade tariffs of up to 45 per cent on imports from China into the US, there could be "adverse consequences" for Tasmania, including for its traditional manufacturing industries, such as metal smolting.

He said although mainland commodities would be hardest hit, the lucrative Chinese tourist market could also be affected.

"That measure is intentionally designed to damage the Chinese economy by shrinking its share of China's second biggest export market — the United States," he said.

"There could also be a potential adverse impact on Chinese tourist numbers coming to Australia if the Chinese economy is significantly weakened and Chinese find it harder to afford the cost of travelling," he said.

Mr Eslake said he hoped the "conciliatory" tenor of Mr Trump's speech suggested "he may govern in a very different way to the way that he's campaigned".

"If that turns out to be the case then some of Mr Trump's policies, for example the increased spending on infrastructure, could have a positive impact on US economic growth," Mr Eslake said.

"Indirectly that might be positive for the rest of the world and it could result in a stronger US dollar if Mr Trump can hold back from seeking to undermine the independence of America's central bank."

"In those circumstances a stronger US dollar would imply a weaker Australian dollar and of course that would be a positive for, among others, Tasmania's exporters and tourist industry."

"But it all depends on Mr Trump doing all of the things that he said he would do during the course of the election campaign."

Tasmania's Minister for Primary Industries Jeremy Rockliff said he was not concerned.

"There's no reason why the Tasmanian Government should be concerned at all," he said.

"We have a FTA (free trade agreement) with the United States, in terms of Australia and the United States. Our produce in Tasmania is still going to be sought after."

"There's a lot of water to go under the bridge yet, but my understanding is that Tasmania will not be impacted at all by the change of the presidency."

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend