Chalmers to meet with US Treasury Secretary Scott Bessent

A push to expand investment opportunities for super funds in the American market may strengthen Jim Chalmers’s case for tariff exemptions in his meeting with US Treasury Secretary Scott Bessent.

Treasurer Jim Chalmers in Washington, DC, attending the World Bank's schedule spring meetings. Picture: Supplied

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Jim Chalmers is backing efforts to expand superannuation fund investment partnerships in America as he makes the case for an Australian exemption from steel and aluminium tariffs during his meeting this week in Washington with US Treasury Secretary Scott Bessent.

The Treasurer is scheduled to address the inaugural Australian Super Summit at the Australian embassy in Washington on Tuesday local time along with ambassador Kevin Rudd, as the government continues to argue for an exemption from Donald Trump’s 25 per cent steel and aluminium tariffs, scheduled to commence on March 12.

“That’s all about stronger returns for Australians from stronger ties with the American economy,” Dr Chalmers told the ABC’s Insiders program.

A fresh report by economic and research advisory firm Mandala has found Australian super fund investments in US private markets alone could exceed $US240bn ($378bn) by 2035 if deeper financial partnerships with America can be forged – a major increase on the $140bn forecast on current trends.

This shift would see investment in US infrastructure lifting by 2035 to $110bn – an additional $50bn compared to the current scenario. Commissioned by IFM Investors and based on analysis from the Super Members Council, the report models that total Australian super fund investment in the US will more than double over the decade from $US400bn to $US1 trillion.

IFM Investors global head of external relations David Whiteley said Australia’s pension assets totalled approximately $US2.8 trillion and it was “the right time to invest more”.

Super Members Council executive general manager for strategy and insights Matt

Linden said there was a “great opportunity to unlock further investment opportunities for Australian super fund members in the US”.

US Secretary of the Treasury Scott Bessent. Picture: Andrew Caballero-Reynolds/AFP

The scramble to expand investment opportunities may also give Dr Chalmers a strengthened case for Australian tariff exemptions in his meeting with Mr Bessent, although the Treasurer downplayed the prospect of a major breakthrough.

“The Americans run a substantial trade surplus with us – they have since the Truman administration … so they have nothing to fear,” he told Insiders. “Trade and tariffs will be part of the conversation, but not the whole conversation.

“I don’t expect to conclude those discussions on steel and aluminium while I’m in DC. But whether it’s the flow of capital or critical minerals and trade, there’s lots to talk about.”

Australian Industry Group chief executive Innes Willox said the visit by Dr Chalmers was a “very important marker in trying to reset a key economic relationship”.

“Australian business has frankly been alarmed at the instability and uncertainty that has been introduced in recent weeks by the threat of tariffs on steel, aluminium and iron, as well as the possibility of reopening the free-trade agreement,” he said. “We hope the Treasurer can start the process of stabilising the economic relationship.”

Mr Willox, a director of Australian Super, said the upcoming superannuation summit at the embassy in Washington was an opportunity to “explain to ­American policymakers that our ties are deep, complex and longstanding”.

Business Council of Australia chief executive Bran Black said that as Australia faced the prospect of US tariffs on steel and aluminium commencing on March 12, “all engagement with President Trump’s team is useful.”

“Australia has a good story to tell – the United States has a trade surplus with us and we have longstanding cultural and military ties between countries, particularly with the significant AUKUS agreement,” he said. “The US is also ramping up its efforts to make its already competitive and productive economy even more so with a new pro-business approach. It will be important for the Treasurer to hear about these efforts first-hand and take action back in Australia to ensure we don’t miss out on investment and job opportunities.”