As Australia’s latest budget is about to be put down, one word appears to dominate messaging.
Australia’s treasurer Jim Chalmers said building resilience in the face of global economic uncertainty will be a central component of the budget on the evening of March 25th.
Chalmers describes the budget as an opportunity to put the economy at the forefront and center for elections, and praises it as a “budget for building Australia’s future.”
But one factor stands out in the message of Chalmers, the upcoming budget.
The tariff topic seems to have left an impression as President Donald Trump attempted to convey his latest tariffs in just a few days, and many American industries are seeking changes in their business with Australia.
“One of the main themes of the budget is to turn our economy more resilient in the face of all of the economic uncertainties around the world,” Chalmers told ABC.
“We have expressed our own opinions on multiple occasions and today we are re-expressing concerns about these escalating trade tensions.
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“We are a very trade exposed country. We are not uniquely affected by these tariffs from Washington, DC, but there is a lot of skin in the game.”
Chalmers said the budget would seek to provide cost-of-living assistance to mitigate the impact from overseas trade issues.
“So, in addition to helping to strengthen livelihoods and Medicare, what the budget will be like is also what these external shocks will help us to be more resilient,” says Chalmers.
“We have a bit of money to promote Australia to “buy Australia,” but we’re promoting the billions of dollars investing in things like green metal. As these changes in response to US tariffs, we are sure they are a reliable part of our global supply chain.
Chalmers said the federal contingency is to make the economy more resilient.
“When we talk about building Australia’s future, what we’re really talking about is making our economy more competitive, dynamic and productive, but more resilient,” he said.
“Now, this is a new world of uncertainty, and the budget will become a platform for prosperity in its new global context.
“That’s about the many investments we made in Australia in the future.”
Chalmers claims Australia is economically turning the corner and things are looking up.
“What we’re trying to do here is making the right economic decisions for the right reasons and to those worried about these global developments, I say that the Australian economy has really turned the corner,” he said.
“And we’re doing better than most countries in this new world of uncertainty. The budget is to build on that momentum for Middle Australia’s profits.”
The impact of customs duties
According to economist Saul Eslake, only 4% of Australian goods are sent to the US, so even in the face of tariffs, the overall impact on the economy must be minimal.
However, some export categories are more exposed, such as beef, which was sent to the US in 2023-24.
In the same fiscal year, Australia exported 54% of its pharmaceuticals to the state, exporting 30-37% of its specialty products, such as aircraft parts, and 33% of its iron and steel.
