There is a lot of concern and commotion about the US imposing 10% tariffs on Australian exports. But it is important to put this in context.

Movements in the exchange rate over a year are regularly more than 10%. When the exchange rate drops by 10% that means Australian exporters are getting 10% more in Australian dollar terms for their exports. When it goes up by 10%, they are getting 10% less in Australian dollar terms.

For example, 6 months ago, at the end of September an Australian dollar was worth 69.4 US cents. 4 months later at the beginning of February it had dropped 11% to 61.5 US cents. Since then, it risen slightly to 62.7 US cents.

While these 10% tariffs will have an effect, they are not likely to be devastating, particularly for industries that have to contend with regular movements in exchange rates.