Australia and New Zealand: Indirect Exposure Threatens A Delicate Recovery

Less direct risks but substantial indirect exposure. Australia and New Zealand may face less risk of new U.S. tariffs relative to other Asia-Pacific economies. Instead of a trade surplus, the Pacific has a sizable US$16 billion trade deficit with the U.S. They would also face less direct impacts from U.S. tariffs--their exports to the U.S. amount to just 1.1% of their combined GDP.

...Australia and New Zealand have limited exports to the U.S., but indirect tariff effects could hit their large export sector....

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