Treasurer Chalmers: Expect Australian GDP to take a hit due to Trump’s tariffs

Commenting on the impact of US President Donald Trump’s tariffs on Monday, Australian Treasurer Jim Chalmers said that he expected the economy to take a  hit.

Key quotes

"Fall in Australian Dollar (AUD) largely as a result of concerns about Chinese economy."

"Also reflects the  fact that markets are now expecting around four interest rate cuts in Australia this calendar year."

"Direct impact of tariffs on the Australian economy manageable."

"We expect big hits to us and Chinese growth.

"Expect Australian GDP to take a hit."

"Spoke to Reserve Bank of Australia (RBA) Governor Michele Bullock to compare notes on expectations."

Market reaction

Despite these discouraging comments, AUD/USD holds its recovery mode above 0.6000, still losing 0.33% on the day.