Aussie Holds After Dodging US Tariff Hikes
The Australian dollar stabilized around $0.643 on Friday, halting a six-day losing streak as Australia avoided the latest US tariff hikes, with most imports remaining subject to the 10% rate. On Thursday, President Trump issued an executive order revising “reciprocal” tariffs on several countries—raising rates 10–41%—while countries not listed will face an automatic 10% duty and transshipped goods an additional 40%, taking effect seven days after the order.
However, Australia avoided steeper tariffs, with its rate held at 10% despite earlier threats of a hike to 15–20%. The White House cited progress in trade and security talks, noting Australia is among countries nearing deals with the US.
Meanwhile, the commodity-linked Aussie remained under pressure from a sharp plunge in copper prices, which sank over 18% after the US clarified raw copper forms were excluded from the new tariffs. A dovish RBA outlook also weighed, leaving the AUD set for its sharpest weekly fall since early March.
Source: Trading Economics
