By Renja Jose
Sydney (Reuters) -Mining and energy exporting to Australia is expected to continue to slip over the next two years, as a result of increased risks of trade barriers, falling mass prices and poor global economy, a government report said on Monday.
The June-Car report by the Department of Industry, Science and Resources in Australia says uncertainties spinning over US President Donald Trump’s policies have violated global trade, forcing businesses to postpone their investment decisions.
“Increased caution has caused further weakness in activity. The accompanying uncertainty is likely to affect world demand for goods, as the nations they supply in Australia are affected,” the report said.
“The prospects are more uncertain than normal.”
In April, Trump imposed a 10% tariff for commodities from most countries, although he suspended higher taxes on many trading partners for 90 days until next month.
Trump said last week that the United States signed an agreement with China, Australia’s largest trading partner, linked to trade, but he did not provide details.
For the financial year of 2024-25 this month, Australia is estimated to announce $ 385 billion ($ 252 billion) earnings, a $ 415 billion reduction in 2023-24.
This is expected to fall to $ 369 billion next year and to $ 352 billion in 2026-27.
Iron ore prices, Australia’s top exports and liquid natural gas is likely to be facilitated as a result of a larger global offer, the report said. Iron ore export earnings can fall from $ 116 billion this year to $ 105 billion next year and $ 97 billion in 2026-27.
Gold will shine next year and is expected to become the third largest export in Australia after iron ore and LNG with $ 56 billion in volumes and prices expected to increase, the report said.
“Higher prices for gold and predict higher exports of copper and lithium, partly compensate for the impact of lower prices for iron ore, coal and LNG,” Resource Minister Madlin King said in a statement.
Lithium prices are expected to recover slowly after a recent decline, with revenue forecast to rise from $ 4.6 billion this year to more than $ 5.5 billion next year and more than $ 6.6 billion in 2026-27, the report said.
(1 $ = 1,5279 Australian dollars)
(Reporting by Rendju Jose in Sydney; editing by JAMEMI Fried)
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