Australia Faces Manageable Impact from US Tariffs, Treasurer Says

Treasurer Jim Chalmers has indicated that the economic impact of U.S. tariffs on Australian steel and aluminum will be manageable, with a projected direct hit to GDP of only 0.02% by 2030, although indirect effects could increase this to 0.1%. In his recent statements, he criticized the decision not to exempt Australia from these tariffs, calling it unnecessary and harmful to global growth. Chalmers emphasized that the Australian government's response will focus on resilience rather than retaliation, addressing broader economic uncertainties fueled by escalating trade tensions and a slowdown in China. The OECD has downgraded Australia's economic growth forecasts, attributing this partly to the indirect fallout from U.S.-China trade frictions. Chalmers described the tariffs as self-defeating and a risk to economic stability not just for Australia but globally. As the government prepares for the federal budget, Chalmers reiterated the importance of adapting to the evolving landscape of global trade.