Productivity Commission urges Australia to remove tariffs as Donald Trump extends US deadline

The federal government’s economic think tank says Australia will likely be a winner from Donald Trump’s tariffs if it does not retaliate and that we would be better off by removing more of the nation’s remaining tariffs. In its annual trade and assistance review, modelling by the Productivity Commission finds that Donald Trump’s “liberation day” tariffs — as well as sector-specific tariffs on aluminium, steel and automobiles and parts — could lead to a 0.37 per cent increase in Australia’s economic output, as measured by real Gross Domestic Product (GDP). “What happens is that there’s capital outflow from the United…