Treasurer Jim Chalmers meets Trump’s economic adviser Scott Bessent amid fears over tariffs

Treasurer Jim Chalmers has held talks with Donald Trump’s go-to economic adviser in the US, as Australia braces for new tariffs that would breach our free trade deal.

Donald Trump’s potential Treasury secretary has met with Treasurer Jim Chalmers amid mounting anxiety about the former president’s universal tariff plan if he returns to power.

The Republican has vowed to hit all imports to the US with a tariff of at least 10 per cent if he wins the November 5 election against Kamala Harris, saying America’s allies “treat us actually worse than our so-called enemies” on trade.

While the extraordinary move would breach Australia’s free trade agreement, Dr Chalmers refused to weigh in on Mr Trump’s policy as he pushed for unimpeded trade to continue.

“We’ve said consistently for some time that Australia is a big beneficiary of open markets, we are a big beneficiary of trade and we want that to continue,” he said.

Speaking at the end of a two-day visit to Washington DC, the Treasurer revealed he had met with hedge fund manager Scott Bessent, Mr Trump’s go-to economic adviser who he has called “one of the most brilliant men on Wall Street”.

Jim Chalmers in Washington DC for face-to-face meetings with global counterparts. Picture: X

Mr Bessent, who will likely take on a key economic role if Mr Trump returns to the White House, told the Financial Times this month that his universal tariff plan was a “maximalist” position that could be watered down in talks with America’s partners.

Dr Chalmers also met with White House national economic adviser Lael Brainard on the sidelines of the International Monetary Fund’s annual talks in Washington DC.

He said he was closely monitoring the “political uncertainty” in the US ahead of the “evenly poised” election, and that the Albanese government would “play the cards we are dealt”.

“I don’t want to pre-empt policy outcomes from either of the presidential candidates … We’re aware of and cognisant of comments that former president Trump has made about tariffs,” he said.

“Like any responsible government, we go through different scenarios and we work through what they might mean for Australia, but we don’t engage in a running commentary on that.”

“We’ve tried to make sure that we are in contact with and in discussions with major players from both sides of politics. I think that’s as Australians would expect from us.”

“No matter who the Americans choose to lead them, Australia will work around the clock to have a good, effective, productive relationship with them, managing any issues that might arise.”

US Treasury Secretary Janet Yellen shakes hands with Treasurer Jim Chalmers at IMF headquarters in Washington DC on October 24, 2024. Picture: Saul Loeb/AFP

Dr Chalmers said that while the ongoing wars in the Middle East and Ukraine were “casting a dark shadow over the global economy”, he was confident that “the worst is behind us” on inflation, with cost of living increases having halved ahead of new data next week.

“We have made really quite considerable progress in the fight against inflation,” he said, while acknowledging that the fight was “not over yet”.