The press conference has now turned to broader topics like US tariffs.
Chalmers was asked if the uncertainty surrounding those trade barriers played a part in today’s RBA decision.
Treasurer Jim Chalmers during today’s press conference. Credit: AAPIMAGE
Here’s what he had to say:
Well, you can see in the Reserve Bank statement that global uncertainty is really one of the defining influences on our economy at the moment. And I think it will be the main thing that shapes our choices as a government in this second term. The international environment is very unpredictable, very volatile, and the Reserve Bank board has put that view in the statement pretty clearly.
The treasurer was then asked how fresh tariffs on countries like Japan and South Korea could affect Australia.
This was Chalmers’ response:
First of all, there’s no change to the US approach to Australia. We’re still subject to the lowest baseline rate, which is the 10 per cent. Now, we’ve made it very clear that we think these tariffs are bad for the US, bad for Australia and bad for the global economy.
And whether it’s our key trading partners Korea, Japan and elsewhere, one of the things that we are most concerned about, in addition to the impact on our own workers and industries and employers, is the impact on global demand more broadly.
So that’s why we’ve been, I think, at every opportunity, making the case that these tariffs are unjustified – [and[ they should be removed in line with our free trade agreement. And that these tariffs, these reciprocal tariffs, should be zero.
Earlier today, Prime Minister Anthony Albanese insisted he hadn’t given up on negotiating with President Donald Trump for reductions in tariffs on Australian goods imported to the US.
While he pledged to fight for reductions, the PM conceded that “no country has a better deal than Australia”.
“Australia has a tariff rate of 10 per cent, which is at least as low as any country in the world.”
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