Transport companies can pass on their increased costs by charging more. Most Australian manufacturers cannot.
This is because they are price takers not price makers when the competition is from offshore and doesn't pay the tax.
For instance, the price that Golden Circle charges for Australian canned pineapple is limited by the price of the alternative Thai product. The consumer will switch if the price difference is higher.
The price of a Holden is limited by the Honda competition.
In Adelaide there is a big old factory (Penrice, ASX:PSH) that makes Soda Ash. Its an energy intensive business. That chemical is a major ingredient of glass. The Soda Ash price is set by the imported competition. Penrice can't put up its prices. It was already struggling to survive with Australian costs.
Hundreds of small foundaries making castings around Australia compete with imported alternatives. They can't just put up prices.
In a global economy one country's manufacturers can't just decide to increase their prices. Its not rocket science and no amount of spin changes the reality.
