US President Donald Trump’s tariffs will create only a “small negative shock” for Australia and not alter the turnaround in the economy, Labor governments have told the workplace umpire as part of a push for an above-inflation minimum wage increase for 2.9 million workers.

Employers have argued the high global economic uncertainty caused by US tariff policy means this year’s award increase should not exceed 2.5 per cent, clashing with the ACTU’s 4.5 per cent claim and the Albanese government’s call for a real wage rise off the back of an economic rebound.