Australia Notches a Win Amid Trump Tariffs on Gold, Beef Exports
TL;DR
Australia's trade deficit with the US hit a 21-year low due to a surge in gold and beef exports amid Trump tariffs. Gold exports jumped nearly 10-fold, while beef shipments rose 47%, though the beef advantage may be short-lived.
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Australia is emerging as a quiet winner amid the Trump administration’s tariff campaign as surging gold and beef exports improve its trade balance with the US.
The mining-rich nation narrowed its trade deficit with the US to the lowest in 21 years, according to Bloomberg Economics, as gold exports jumped almost 10-fold over the 12 months through September while beef shipments climbed 47% in the same period.
“It’s not the first time the island nation’s small, open economy has emerged a surprise beneficiary against a larger trading partner,” wrote Bloomberg Economics economist James McIntyre in a note. “Australia’s diverse commodity base leaves it well placed to benefit from global shifts.”
Gold exports contributed most to the overall change after Australia sold A$16.4 billion ($10.6 billion) of the haven asset to the US over the 12 months to September, up from A$1.6 billion in the prior year.
Similarly, Australian beef producers — initially expected to suffer under Trump’s tariff regime — found themselves holding a relative advantage over their peers, including top suppliers in Brazil who faced higher rates. Still, the boost may prove short-lived after the Trump administration lifted a key beef tariff on Brazil to ease cost-of-living pressures, according to Bloomberg Economics.
The tailwind from gold sales may prove longer lasting, adding “around A$15 billion, or about 0.5% of GDP, if prices stay high through 2026,” wrote McIntyre.