Flourish Health & Wellbeing eMag - Latest Edition - Flipbook - Page 53
Why They Matter to You (Yes, You!)
BY CON BARBAYANNIS, CPA
You’ve probably seen the
headlines: “Trade Wars
Heat Up!” or “Tariffs Slam
Global Markets!” But
let’s be honest — most
of us are just trying to
get through our weekly
shop without spending
a fortune. So, what do
trade tensions and tariffs
really mean for your
everyday life?
What Are Trade Tensions
and Tariffs?
Who Actually Pays
the Tariff?
Picture this: Countries trade
goods and services with one
another. But some琀椀mes,
arguments erupt over what’s
fair. To protect their own
producers, a country might slap
a tari昀昀 (a kind of tax) on goods
coming from the other side.
A common myth is that it’s
the expor琀椀ng country that
cops the cost. In reality, it’s
the importer — the Aussie
business or retailer bringing
the product into Australia —
that pays the tari昀昀.
For example, if Australia imports
steel from another country,
and there’s a 20% tari昀昀 on it,
it becomes more expensive to
buy that steel. This is meant to
encourage buying locally made
products, but it can have some
unintended side e昀昀ects.
And guess what? To stay a昀氀oat,
they o昀琀en pass that cost on
to you and me, the consumer.
So if the cost of imported fruit,
petrol, or electronics goes
up, it’s likely because tari昀昀s
are quietly working
behind the
scenes.
How This Hits Your Hip Pocket
Trade tensions and tariffs can ripple through nearly every part of
your daily budget.
Groceries: Australia relies on imported
foods, especially out-of-season fruit,
packaged goods, and certain ingredients. If
tari昀昀s hit these imports, supermarkets will
likely raise prices to cover the extra costs.
Petrol: Australia imports over 90% of its fuel.
If global tensions lead to tari昀昀s or restric琀椀ons
on oil, 昀椀lling up your car will cost more. And
remember: when fuel prices go up, transport
costs rise too, nudging up prices on just
about everything else.
Household Items: From smartphones to
washing machines, many of our everyday
essen琀椀als are made overseas. Tari昀昀s on
electronics or appliances mean higher
retail prices.
