These popular holiday destinations just got pricier for Australians

Planning a big trip to the UK? The Aussie dollar just got worse there and it's not the only country where Aussies will now pay more because of US President Donald Trump's trade tariffs.

Economic uncertainty surrounding a number of countries that have been hit with trade tariffs by President Trump's administration - particularly China, Japan and South Korea - have contributed to the Australian dollar dropping to its lowest levels since the pandemic, an economist said. It was hovering around US 60 cents on April 9.

Sydney University lecturer at the School of Economics, Dr Luke Hartigan, said the Aussie dollar had dropped most dramatically in the USA, Japan, Europe, Singapore, NZ, UK, Canada and Switzerland.

"It's very bad because all the popular destinations people want to go to - the United States, Japan, Europe, South Korea, Singapore, New Zealand, the UK, even Thailand - are more expensive than what it used to be," Dr Hartigan told ACM.

Among the worst-hit is our dollar against the UK, which now sits at under half a pound, which Dr Hartigan described as "crazy".

"If you see something that's 20 pounds, you're paying $42 basically," he said.

Dr Hartigan explained why the Aussie dollar has fallen so dramatically amid the new tariffs.

With exports and imports making up over half our economy, we're "very trade exposed" in Australia.

Most of our trade goes to China, Japan and South Korea, which have been hit with some of the highest tariffs by the US.

There are now concerns that these economies are going to slow down, and if they do, so too will their demand for Australian goods and services.

"Also, people think the Australian economy is going to slow," Dr Hartigan said, pointing to speculation the RBA might cut interest rates.

"So you've got all these forces where people would prefer not to hold Australian dollars," Dr Hartigan said.

UTS Institute for Public Policy and Governance industry professor and chief economist, Professor Tim Harcourt, said though Aussies would now need to pay more to travel, he didn't think it would stop them going overseas - and there were bound to be thousands heading to the World Cup in the US next year.

"I think you'll never stop Aussies travelling," he said. "And there's still a bit of pent up demand because of COVID."

His advice was to "hedge [your bets] where you can with exchange rates" and "shop around for discounted flights".

He suggested purchasing a money card from the bank and locking in US dollars when it is at a high rate.

For those going overseas, our dollar is still strong in NZ (even though it has fallen), Thailand, Malaysia, Vietnam, Philippines and Indonesia, Dr Hartigan said.

And for those who have already booked in their UK trip, his advice was to go ahead and enjoy it - just buy less coffee and dinner out when you get home to make up for it.