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  • 4 months ago
Trade War Strategy: Trump's trade war strategy often involves using tariffs and other trade barriers as leverage to force concessions from trading partners. This approach has been controversial and has led to retaliatory measures from countries like China and the European Union.
Potential Deal with Australia: The fact that Trump is discussing a potential deal with Australia suggests a possible shift in his trade approach, at least with certain allies. This could be an attempt to:
Strengthen Alliances: Reassure traditional allies who have been impacted by the trade war.
Diversify Trade Partners: Seek new markets or strengthen existing ones outside of those currently embroiled in major trade disputes.
Gain Leverage: Use a potential deal with Australia as an example or a bargaining chip in negotiations with other countries.

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Transcript
00:00Well the big superannuation fund is threatening to reduce its investments in
00:03America because of Donald Trump's trade war. This says the US president
00:07confirms he will discuss a potential deal with Australia. For more let's bring in
00:11John Keir, economics editor of the Australian Financial Review. G'day Johnny.
00:14Should investors wait to see if a deal is struck now? Yeah it'll just be
00:20interesting won't it if the president is open to a deal with Australia. What
00:24that exactly means who knows in the world of Donald Trump because we're
00:27only copying a 10% tariff which is the minimum that everyone else is getting
00:31applied so whether we can do any better than that it remains to be seen I
00:36reckon. Yeah I think that's a very good point. Well if Unisuper does sell will
00:40other funds follow? How do you see it? Yeah so Unisuper says actually we've
00:46invested a lot in American stocks in recent years particularly those big
00:49technology stocks. Now the US stock market's down about 10% since Trump's
00:53inauguration even after a bit of a recovery after he hit pause on those
00:58tariffs on most countries so but Unisuper is looking to maybe reduce its
01:03exposure to US now because it just says so much volatility uncertainty has been
01:07introduced. Other super funds though not so sure Australian super it's the
01:12biggest in Australia it's doubling down on its investments in America so it's
01:15got the most profitable companies the highest growth the best innovation and
01:18technology. Do you know what I reckon I heard a bit of chatter around yesterday
01:21about these unrealized gains in superannuation that could
01:26potentially be a massive hit right? Yes so Labor wants to introduce an extra
01:31tax on superannuation accounts with three million dollars or more including on
01:35unrealized gains that's where you actually haven't sold the asset yet to
01:39make the profit it's just a paper profit the asset value has gone up you
01:43actually haven't sold it to realize it there is a little bit of concern out
01:47there in investor land what this might mean for those not only those funds but
01:51whether this could be spread to other assets with the Greens want to reduce
01:56that three million dollar threshold to two million dollars so there is some
01:59concern there amongst the investment and business community no doubt. I mean if
02:03they tax them and then they sell it and don't make a profit will they give the
02:05money back unlikely? Well that's the thing no they won't if you if the asset
02:09price falls the share market falls as we've seen recently you won't get an
02:12immediate refund on the tax you paid on the previous unrealized gains so you'll
02:16get a credit going forward but you have to actually start making money again to
02:20get that credit realized. That policy is a mess.

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