Australian Treasurer doubts significant negative impact of Trump's tariffs on economy

Australian Chief Treasurer Jim Chalmers expressed confidence in the country's ability to withstand Donald Trump's import tariffs. However, he cautioned that economic growth will depend heavily on global trends. According to Reuters, Australia’s GDP growth may slow slightly this year due to weakening economic performance in the US and China.

The Treasury forecasts that worsening global market conditions will lead to a 0.1% decline in Australia's real GDP in 2025 compared to current projections. Inflation could rise by 0.2%. However, Jim Chalmers does not see a significant deviation from the set values. He noted that China’s economic slowdown had already weakened the Australian dollar during the pandemic.

The Reserve Bank of Australia (RBA) is also monitoring the US president's actions. Last week, it kept interest rates unchanged. However, the officials discussed growing risks due to escalating global trade tensions during the meeting.

With inflation in Australia potentially accelerating, analysts now see little chance of a 0.5% RBA rate cut in May. According to Reuters, only 20% of respondents still expect such a move.