Australia's limits on international students could be a bigger issue than US tariffs, an expert has warned.
President Donald Trump's tariffs have become arguably the biggest economic story of the year, with most Australian goods being hit with a 10 per cent levy while 50 per cent tariffs are imposed on steel and aluminium sent to the US.
But the direct impact of the measures on Australia is relatively small as most exports tend to go to China, Japan and Korea, according to University of Sydney economics lecturer Luke Hartigan.
The bigger issue may be one Australia has already inflicted on itself.
"It's important to look at the larger scheme of things," Dr Hartigan told AAP.
"The tariff exemption is important, but if we wanted to shoot ourselves in the foot, we would reduce the number of international students."
"What's happening with our tariffs with the US is second fiddle."
International student education was worth $51 billion for the Australian economy in 2023/24, but both political parties have vowed to slash numbers, with Labor already revealing a 270,000 cap from 2025 after more than 445,000 commenced study the year before.
Dr Hartigan said international students were important for soft power.
"They get to see Australian culture, they get to learn about Australia and they go back and speak favourably about Australia, so it's a very positive thing," he said.
But most Australian political commentary has taken on the tariff issue, especially as Mr Trump is set to lift his tariff pause on July 9.
Prime Minister Anthony Albanese has said the government will continue negotiating for exemptions while keeping the national interest in mind, and dismissed Trump-style isolationist policies.
However, opposition trade spokesman Kevin Hogan has said the government has "waved the white flag" and called out Mr Albanese for failing to meet Mr Trump face-to-face.
"There are countries dealing and talking to the new US president, but not ours ... it is embarrassing," Mr Hogan said.
Australia could feel some indirect effects when the pause lifts, Dr Hartigan said.
Tariffs on China could cause issues for Australia and uncertainty around the levies could play out in the stock market.
