During Trump's first term, Australia successfully negotiated substantial exemptions to US tariffs.
The Federal Government has warned that Australia is gearing up for potential economic hurdles in a second Trump presidency and should be ready for possible financial shocks.
The election of Donald Trump as the next United States president has sent reverberations around diplomatic circles with concerns his proposed import tariffs could skim tens of billions of dollars off the Australian economy.
Federal Treasurer Jim Chalmers said at an Institute of International Affairs event on Monday, November 11 that he believes Australia is well-equipped to weather the challenges.
“We should expect a small reduction in our output and additional price pressures, particularly in the short term,” Dr Chalmers said.
“But specific features of the economy, like a flexible exchange rate and independent central bank, would help mitigate against some of this.”
During Mr Trump's first term, Australia successfully negotiated substantial exemptions to US tariffs.
Prime Minister Anthony Albanese said he will use former prime minister Malcolm Turnbull’s argument for not imposing tariffs on Australian exports because the US has a trade surplus with Australia.
“We are working at home and with international partners to put downward pressure on inflation and help safeguard Australia’s economy against global challenges,” Mr Albanese said.
“The United States is a major investor here in Australia (and) that investment creates economic activity and creates jobs.”
Opposition Leader Peter Dutton said the opposition would be ‘first in line’ supporting the government in putting forward Australia's case.
“Tariffs do increase inflation ... and if there is a tariff applied, people pay higher prices for goods,” Mr Dutton told ABC Radio.
“I’ll do everything I can in our country’s interest to help those producers and manufacturers, because they create jobs and they create wealth for our country.”
Federal Nationals leader David Littleproud said Australia’s ambassador to the US, Kevin Rudd, could negotiate tariff exemptions.
“What we don’t want is a trade war between any countries, but particularly to the level of between China and the US,” Mr Littleproud told ABC Radio.
“That is not in the interest of an FTA (free trade agreement) that has served us so well.
“The first step for us is to see if we can get a carve out on any of those industries impacted like we did last time.
“It is important that Kevin Rudd has the ability to do that.”
– with AAP.