CANBERRA: US tariffs on steel and aluminium are “self-defeating” and Australia merits better treatment, treasurer Jim Chalmers says, adding the overall economic impact of president Donald Trump’s levies to date would be relatively small.
“We’re not uniquely disadvantaged by the tariffs coming out of Washington, but we deserve better as a long-term partner and ally,” Chalmers told the Australian Broadcasting Corp yesterday.
“These sorts of tariffs are self-defeating, they’ve self-sabotaging, they’re a recipe for less growth and higher inflation, not just in the United States but around the world.”
Chalmers will deliver his fourth national budget next Tuesday, ahead of an election that must be held by mid-May.
The Australian treasurer said the vote would focus on making the national economy “more resilient at a time of very serious global economic uncertainty”.
In a pre-budget speech, Chalmers is expected to say the forecast impact on Australian growth from the tariffs on steel and aluminium imposed by the Trump administration last week is expected to be “less than 0.02% by 2030”.
Australia lobbied heavily in Washington to get an exemption from the tariffs, but in the end there was no carve out, despite Trump saying he would consider the proposal. — Bloomberg
