Fears that Donald Trump’s trade war could push Australia into recession are overblown, say economists who predict local businesses will find new export markets while the economy will be bolstered by rate cuts and a falling currency.

Analysts are increasingly convinced Trump’s “liberation day” tariffs will spark a global economic downturn this year, fuelling a sharp sell-off in equity markets and causing traders to bring forward bets for interest rate cuts by the Reserve Bank of Australia.