Donald Trump’s trade and tariff policy would bring a small reduction in Australia’s output and extra price pressures, especially in the short term, according to Treasury modelling.
But our flexible exchange rate and the independence of the Reserve Bank would help mitigate some of the effects.
Treasurer Jim Chalmers, who commissioned the modelling ahead of the US election, will outline the analysis in a Monday speech to the Australian Institute of International Affairs. Extracts were released ahead of delivery.
