US President Donald Trump’s pledge to spend $1 trillion on infrastructure could equate to big increases in the value of iron ore exports for WA, says CCI Chief Economist Rick Newnham.
While much of the commentary surrounding Trump oozes world doom and gloom—such as ditching the Trans-Pacific Partnership this week – Newnham sees a more bullish impact.
He’ll share his views at the Trumpenomics breakfast on 17 February.
Newnham will cover a range of topics from Trump’s infrastructure spend, to his protectionist policies and what the impacts will be for WA.
“The first thing to look at for WA is the infrastructure spending that Donald Trump has committed to, which is $1 trillion in additional infrastructure spending during his term,” he says.
“A trillion dollars is a very large amount of money to commit. It will put the USA well up on its per capita steel intensity compared with other OECD nations if they go through with it. It means for WA a big increase in the value of iron ore exports, some of which we have already seen.
“The US is not one of our major iron ore destinations, China is, but the iron ore market is a global market and we’ve already seen the spot price in iron ore shoot up at the time of Donald Trump’s election.
“I think there will be opportunities for WA in increased iron ore exports and the increase spending on infrastructure in the US will go a long way to picking up any loss of demand from China in the medium term.”
Newnham will also talk about the impact of Trump’s protectionist policies on WA and what it would mean for WA’s relationship with China.