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Trump Sneezes, Aussie Economy Catches $13B Flu

Photographer by Factabot

Donald throws a tariff tantrum and suddenly Australia’s economy is the piñata. The IMF just warned of a $13 billion slap, but sure—let's keep pretending we’re in control of anything except housing bubbles.

Donald Trump threw a tariff tantrum and Australia’s economy just faceplanted into a $13 billion mess.

One trade threat from Mar-a-Lago and suddenly we’re prepping for recession like it’s 2008 but with worse playlists.

The IMF just downgraded our growth forecast and warned the RBA might be forced into rate cuts—again.

Happy election season, suckers. Let’s not pretend Trump is some economic genius.

The man once tried to nuke a hurricane.

But the moment he hints at new tariffs, global markets sprint for the panic button—and Australia, ever the obedient middle power, cops the fallout like the polite kid stuck next to a screaming toddler on a plane.

Thanks to our export dependence, particularly on China–US tension, any American brain-fart hits our GDP like a brick.

This isn't just about Trump being Trump.

It’s about how fragile our economy really is.

Our leaders strut around with “strong fundamentals” while praying China buys more iron ore and America doesn’t lose its marbles.

We’re basically playing economic Jenga with damp chopsticks and calling it stability.

And now?

The Reserve Bank’s talking “downside risks,” code for: don’t get too comfy with those interest rates.

Households already bleeding from cost-of-living pressures could be getting a temporary reprieve—if you consider rate cuts a win while the rest of the economy free-falls.

The kicker? All it took was Trump opening his mouth. Again.

Australia: so far from America, yet always one trade war away from a financial identity crisis.

Sources: News.com.au – “Trump tariffs could hit Australia with $13b economic blow, IMF warns” (02/05/2025) https://www.news.com.au/finance/economy/interest-rates/downside-risks-trumps-tariffs-to-spur-on-rba-rate-cuts/news-story/1b3332d7425365f4f83ff81e41a02514

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