There has always been a risk of Australia getting caught up as collateral damage in global trade disputes, even if they don't directly impact us, Innes Willox, Chief Executive of the national employer association, the Australian Industry Group, said today.
"As an economy heavily dependent on trade, there is no room to be sanguine or complacent about what is happening," Mr Willox said.
"The consequences of a tariff war between the US, China, Canada, Mexico and others have the potential to be long-lasting and significant.
"A sudden or gradual retreat to protectionism on a global scale would be potentially extremely damaging for the international economy, including Australia.
"We should not think our country is immune from the impacts of this trade war, which started over illegal migration and illicit drugs.
"We narrowly avoided tariffs on our steel sector during the last Trump administration, and the new approach seems even tougher, with the potential to prolong our inflation and interest rate pain.
"The Government has much work to do," Mr Willox said.
