Task 1: Case Study (2,000 words) Shifting Tides: The Impact of Emerging U.S. Tariffs on Global Trade and Australia’s Strategic Response
Introduction
In March 2025, the United States implemented a new round of tariffs on imports from several countries, including Canada, Mexico, and China. These tariffs range from 10% to 25% and cover goods such as energy resources, steel, aluminium, electric vehicles, and critical minerals. While Australia has not yet been directly affected, it faces increasing uncertainty about potential future trade barriers, particularly given its role as a major exporter of aluminium and critical minerals to the U.S. market.
This case study requires a critical examination of how these developments may impact Australia’s trade and economic relationships. You are expected to apply concepts from BUS708 and incorporate real, up- to-date data sourced independently by you, beyond the materials provided in class or online. Students must provide unique insights by integrating their own analysis and reflections, drawing on personal learning and experience.
Background
Australia has a strong trade relationship with the United States, with exports valued at over AUD 22 billion in 2024. Key exports include beef, wine, aluminium, and rare earth elements. The introduction of
U.S. tariffs on other key trading partners has raised concerns that Australia’s exports could be next. At the same time, Australia is navigating complex trade relationships with China and exploring diversification strategies with emerging markets such as India and Vietnam. Australian exporters are also being encouraged to embrace digital platforms and advanced technologies to access new markets.
Task Instructions
Your task is to develop a comprehensive, personalized analysis based on the scenario outlined. You must source and interpret original trade data (for example, from ABS, DFAT, IMF, or World Bank databases) to support your analysis.
You are required to demonstrate critical thinking by:
Formulating your own arguments and evaluating the pros and cons of each issue.
Including specific examples of Australian industries or companies, ideally ones you have researched independently.
Incorporating relevant policy updates or initiatives from the Australian Government, such as the Critical Minerals Strategy 2023–2030 (https://www.industry.gov.au/publications/critical-minerals-strategy- 2023-2030), and assessing their impact on trade.
Analysis Questions
- Trade Balance and Sectoral Impact
- Analyse how potential U.S. tariffs could impact Australia’s trade balance.
- Identify and evaluate the three most vulnerable sectors, citing specific, up-to-date export figures (2022–2024) sourced independently.
- Provide an example of an Australian company within one of these sectors and assess its potential exposure.
- Australian Wine Exports
- Using recent export data, evaluate how potential/actual U.S. tariffs on Australian wine would affect producers.
- Consider two Australian wine exporters (one major and one boutique producer) and compare their capacity to respond to new trade barriers.
- Discuss the likely impact on U.S. wine importers and consumers.
- Trade Diversification Strategies
- Identify two alternative export markets for Australian goods (excluding the U.S. and China).
- Provide real examples of FTAs or trade negotiations in place and assess how these markets can offset potential losses from U.S. trade restrictions.
- Your response must include data analysis (e.g., trade volumes, tariff rates) and your personal interpretation of the challenges in accessing these markets.
- Role of Digital Literacy and Technology Adoption
- Critically assess the role of digital literacy and e-commerce in helping Australian businesses reduce dependence on traditional partners (https://dapth.com/Insights/what-is-digital- transformation).
- Select an Australian SME or industry and discuss how it can adopt digital tools or platforms to expand internationally.
- Reflect on your own experience with digital platforms or research tools and how they could be leveraged by exporters.
Case Study Format Guidelines
The case study should include
- Title page
- Executive summary (100-150 words)
- Introduction (200- 250 words)
- Analysis (1,300-1,550 words)
- Conclusions and Recommendations (200-250 words) References
Appendix (if necessary)
Introduction will include background information and description of the main issues (please focus on economic/financial issues and not discuss the political aspects). Include most recent data (ideally 2022 onwards – for example from ABS, IMF and the World Bank websites), where appropriate. Please provide appropriate references for all data and everything, which is not common knowledge. Minimize the use of direct quotes.
Analysis (1,300-1,550 words): You can use sub-headings in this section. Refer to analysis questions 4.1, 4.2, 4.3 and 4.4.
Conclusion and Recommendations
- Summarize key lessons for Australian exporters in navigating uncertain trade environments.
- Provide three actionable recommendations, supported by real data and examples, on how Australia can strengthen trade resilience and explore new opportunities.
- Include personal insights or reflections, highlighting what you believe to be the most critical factor for long-term success.
References: Provide a complete list of references cited in the text. Include only those references that you have actually read. In the case of books, include the page number when citing in the text. References should mostly include proper academic work (e.g., relevant journal article or high-quality reports, if any) and not blogs.
If you have too much material then put some less important information in the Appen dix.
Submission Requirements
Use real, up-to-date data sources, properly cited (ABS, DFAT, WTO, IMF, World Bank, etc.). Include a reference list of materials you have independently reviewed.
Submissions must reflect critical thinking and original analysis, not generic or AI-generated summaries. AI-generated content typically lacks personalized reflection, independent data gathering, and critical evaluation grounded in a real-world context. Your submission must demonstrate these elements.
Finally, please note that the information provided in this case study (e.g., U.S. tariffs on Australian goods) may not be fully up to date. However, where possible, incorporate current data into your analysis. This course also aims to enhance your digital literacy skills, so actively searching for relevant information and integrating it appropriately is encouraged.
It is important to recognize that assignments cannot be entirely free of ambiguity, especially in an era where AI tools and vast online information are readily available. Some level of ambiguity is necessary to effectively assess student learning, as it requires critical thinking, reasoned argumentation, and the ability to navigate uncertainty. Moreover, real-world decision- making is inherently complex and rarely offers absolute clarity.
If you encounter ambiguity in the case study and/or in Task 2, clearly state your assumptions, apply the relevant concepts, and complete your analysis without getting stuck. If you have engaged with the course material and applied it thoughtfully, your response will not be entirely incorrect. The primary objective is to develop your ability to work with key concepts from the course and apply them in practice