Tariffs news: Finance Minister Katy Gallagher says tariffs ‘not way forward’ as Australia measures impact

Finance Minister Katy Gallagher says Treasury will crunch the numbers to see what effect US President Donald Trump’s trade sanctions will have on Australia, but believes the nation is well placed to cope with the worldwide fallout which is triggering fears of a global recession.

Since Mr Trump’s tariffs announcement on Thursday, the US stock market has taken its biggest two-day dive in history, with key trading partners responding forcefully. China retaliated with 34 per cent tariffs on US imports.

The Albanese Government is taking a cautious approach to the 10 per cent tariff announced for Australia — denouncing the decision but promising not to retaliate by way of a reciprocal tariff.

“The Treasurer has made it clear that he has sought some updated modelling from Treasury on the impacts of the decision that was made (by Donald Trump),” Senator Gallagher said on Saturday while campaigning in Perth.

“You have to remember, we were putting together the Budget together at a time when we understood, or this conversation was pretty live for the global uncertainty faced with the new Trump administration.

“But the Treasurer, since the announcement, has asked for updated modelling and he will release that publicly when he gets it.

“We have argued against tariffs. We don’t see that as a way forward.

“We think that hurts households, and so that is not something we would be considering.”

Australia was spared the massive tariffs imposed on other countries, like China, Japan, Thailand and Japan.

Nevertheless, Prime Minister Anthony Albanese has condemned the move.

“This global trade instability is not good for global growth and that could have impacts here,” Senator Gallagher said.

“But Treasury is forecasting our economy to grow. We have been amazingly resilient.

“Unemployment is low, inflation is down, interest rates are coming down, wages are up — people are in jobs.

“We have come through this global inflation challenge in pretty good shape, but we are not immune from that global instability that we are seeing playing out.”

Analysts say the US tariffs could well trigger a global recession as stockmarkets around the world were hit by world-wide sell off by investors.

It’s been reported that the “liberation tariffs” had wiped trillions of dollars off the value of some of the world’s biggest companies.

“I think we (Australian economy) are in very good shape,” Ms Gallagher said.

“Obviously, business and industry are trying to process what’s happening across global markets.

“I think there is opportunity for Australia, but we are not immune to what’s happening around the world.”