Trump tariffs could boost case for rate cut: economists

The threat to growth posed by tariffs may add to the case for the RBA to cut rates, economists say. (Dean Lewins/AAP PHOTOS)

Even if Australia is exempted from US President Donald Trump's tariffs, the indirect impact of a global trade war on the domestic economy is likely to be larger than any imposts on exports.

With steel and aluminium exports to the US making up just 0.03 per cent of Australia's GDP, the 25 per cent tariffs signed by Mr Trump on Tuesday AEDT would have a "trivial" macro-economic impact, AMP chief economist Shane Oliver said.