Jim Chalmers lauds inflation data, says tariffs hurting US

Jim Chalmers has taken a fresh shot at Donald Trump’s tariffs, partly blaming them for higher inflation in the US.

Treasurer Jim Chalmers has taken a fresh shot at the Trump administration’s tariffs, boasting Australia’s lower interest rates show hiking import taxes is “bad for the American economy”.

A chipper Mr Chalmers fronted morning shows on Thursday to spruik the latest inflation data.

The figures, released on Wednesday, showed the annual inflation rate fell to 2.1 per cent for the June quarter – the lowest rate since 2021.

The result has all-but guaranteed the Reserve Bank will cut interest rates next month.

In his morning appearances, Mr Chalmers was eager to highlight that the progress on inflation came despite “uncertainty” gripping the global economy.

Much of that uncertainty stems from Donald Trump’s tariffs, which the US President is threatening to continue hiking.

US President Donald Trump has threatened to hike baseline tariffs as high as 20 per cent. Picture: Jim Watson / AFP

Asked by the ABC if he was expecting Australia to be hit with a higher baseline rate, Mr Chalmers said the Albanese government had not “heard differently from the 10 per cent baseline that’s been levied on Australia”.

“Obviously, we continue to engage with the Americans on this,” he told the national broadcaster.

“It’s one of the main issues playing out in the global economy.

“It’s a major source of uncertainty in the economy, whether it’s what’s been said overnight about India, whether it’s the back and forth between the US and China or the tariffs levied directly on Australia.”

Treasurer Jim Chalmers says the Trump administration’s tariffs are ‘bad for the American economy’. Picture: NewsWire / Martin Ollman

Pressed on whether he expected that rate to move, he was hesitant to make a call.

“These tariff announcements are a moving feast, but our understanding, our expectation is we get the baseline,” Mr Chalmers said.

“We think that the best outcome is zero because these tariffs are an act of economic self‑harm.

“We see inflation is going up in the US.

“Earlier in the year they had slowing growth, interest rates on hold again in the US overnight, they’ve got higher interest rates than we do in Australia.”

Mr Chalmers went on to say the “tariffs are bad for the American economy, certainly bad for the global economy”.

“We’re better placed and better prepared than most countries to deal with that, but we won’t be immune,” Mr Chalmers said.

“We’ll continue to engage with the Americans on it.”