Australia’s trade surplus saw a significant recovery in June, climbing to $5.4 billion, a notable increase from May’s revised figure of $1.6 billion. This rebound was primarily fuelled by robust growth in coal and gold exports, coupled with a reduction in import values. The latest data indicates a 6 per cent rise in export values, while imports experienced a 3.1 per cent decline, largely due to weaker shipments of capital goods and vehicles.
Despite the positive result in June, Commonwealth Bank of Australia (CBA) has noted that the overall trend remains soft. The quarterly surplus has narrowed to $11.2 billion, down from $13 billion in March. CBA analysts pointed out that lower liquefied natural gas (LNG) prices and increased domestic demand are factors placing downward pressure on the trade balance. The bank anticipates that Australia’s current account will remain in deficit through 2025.
Regarding global trade dynamics, Australia’s exposure to rising US tariffs appears limited. The average tariff rate applied to Australian exports is only slightly above the 10 per cent baseline. However, CBA has cautioned about the potential risks of further escalation in trade tensions, particularly if the US implements proposed tariffs of 250 per cent on pharmaceuticals. Such a move would have a substantial impact on Australian exporters in that sector.
CBA is one of Australia’s leading providers of integrated financial services, including retail, business and institutional banking, funds management, superannuation, insurance, investment and broking services. The bank is listed on the Australian Securities Exchange (ASX) and has a market capitalisation of approximately $175 billion.
