Chinese tariffs have not been effective in denting Australia's export income yet, according to Westpac's chief economist Bill Evans, who said that iron ore exports vastly overcompensate for tariff-hit wine, barley and coal exports.

"If we just look at the numbers, of $150 billion of Australian exports, nearly half of that is iron ore," he said. With a sharply rising iron ore price, "the income boost that we are going to receive from the iron ore sector, I think, will swamp what might happen on the other side."