In the face of extreme uncertainty, collaboration will be top of mind as the treasurer prepares to meet with leaders from some of the world’s most important economies.
Days before the first parliamentary sitting week of Labor’s second term, Treasurer Jim Chalmers is set to head to Durban in South Africa for a gathering of finance ministers and central bank governors from G20 countries.
As conflict in the Middle East, Eastern Europe and the threat of US tariffs continue to shake global markets, Dr Chalmers said there has never been a more important time to collaborate, noting the international economic environment would shape domestic policy.
“We are navigating a world where volatility, uncertainty and unpredictability are now the norm, not the exception,” he said.
“Subdued global growth, extreme uncertainty and fragmentation demands more engagement, more collaboration and more resilience and that’s what guides our strategy.”
He has also stressed the importance of free and open markets, and will prioritise strengthening ties and bolstering supply chains in his meetings.
Australia has not yet received a tariff letter from the US president, but Donald Trump has imposed a baseline 10 per cent tariff on most of its goods and a 50 per cent levy on steel and aluminium.
The federal government has floated using critical minerals as a bargaining chip to try to carve out a tariff exemption and Dr Chalmers confirmed he would discuss the resource with other countries’ leaders at the event.
He is also expected to meet with his counterparts from Japan, Indonesia, Canada, the UK, South Africa and Germany, many of which will have a higher tariff rate imposed on their goods from August 1.
“The Australian economy is not immune from global uncertainty but we are well-placed and well-prepared to face the challenges ahead,” Dr Chalmers said.
All of this would form the backdrop to Labor’s second-term economic agenda, which includes ambitious goals to boost flagging productivity.
The coalition has signalled a willingness to work with Labor on productivity, but specifically through cuts to red tape and regulation, Liberal senator Jane Hume said.
Parliament will resume on Tuesday.
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