NSW braces for Trump trade turbulence and bond market shocks

NSW Treasurer Daniel Mookhey says an erosion in free trade following the election of Donald Trump could make Australians poorer, as he flagged the potential for higher bond yields to damage the state’s bottom line.

President-elect Trump has promised to introduce tariffs and import duties of 60 per cent on Chinese imports, and up to 20 per cent on imports from other countries, including Australia. Economists have warned the sharp rise in trade restrictions could cause a significant slowdown in the Chinese economy, which in turn would damage Australian exporters such as iron ore miners.