Australian CEOs say they are well prepared to weather the Donald Trump 2.0 presidency

Donald Trump has been talking up what he will do in his second presidency and Australian chief executives say they’re ready.

In the lead-up to his inauguration, Donald Trump promised to act unilaterally on a wide array of issues on his first day in the job. Picture: AP

Australia’s leading chief executives are bracing for newly installed President Trump to begin enacting his sweeping agenda.

In the lead-up to his inauguration, Donald Trump promised to act unilaterally on a wide array of issues on his first day in the job, with some decisions likely to affect Australia’s economy. He has warned: “Your head will spin when you see what’s going to ­happen.”

Other policies will take longer to enact and Australian chief executives, who are prepared to take a wait-and-see approach, say they’re prepared.

However, most concerning will be the impact of a new tariff regime aimed at China, Canada and Mexico.

Of greatest concern for Australia is China, with US tariffs potentially lowering the Asian superpower’s gross domestic product, making it harder for them to sell products overseas and potentially leading to a trade war.

Mr Trump has also put his weight behind the resources sector, promising to increase opportunities while also rolling back efforts on renewable energy and climate laws, vowing to repeal the Inflation Reduction Act and withdraw from the Paris climate agreement.

Westpac CEO Anthony Mille. Picture: NewsWire / Nikki Short

Westpac chief executive Anthony Miller believes the Trump presidency will make business more challenging than usual.

“I think we will have to navigate that incongruent setting of growth in the US potentially stimulating economic activity in Australia, but against this we have potential risks to the China/US relationship and of course that could have very serious knock-on impacts to Australia too,” he told The Australian’s CEO Survey 2025. “So there are growth opportunities on the one hand and the risk of slowdown challenges on the other. The key is finding the balance if we have trade disputes between China and the US.

“As this plays out, Australia will need to respond to protect our economy and industries. I think it presents as an opportunity to find more balance in our approach.”

BOQ CEO Patrick Allaway said the geopolitical climate was increasingly uncertain. The potential effects of the Trump presidency included a weaker Australian dollar and changes in trade flows affecting industries.

“Geopolitical uncertainty could create increased volatility across economic, inflation and financial market outcomes. This necessitates a strong risk management capability, scenario-based solutions and agility in our decision-making,” he said.

Bendigo Bank boss Richard Fennell believes Australian households and businesses won’t experience a huge amount of change but he could not rule out the prospect of additional inflationary pressures flowing on from Mr Trump’s key tariff commitments. “At home, the RBA is on track to get inflation back within the target range of 2 per cent to 3 per cent and I continue to subscribe to the view the next interest rate move will be down,” he said.

With Mr Trump’s call for the resource sector to “drill, baby, drill” the Australian resources sector is aware of the possibility of more competition and more ­opportunities.

Shell Australia CEO Cecile Wake. Picture: Eventive Photography

Rio Tinto boss Jakob Stausholm said the global business it often needed to navigate changes in government. “It’s clear there is an increasing recognition of the need for domestic supply sources of copper and other critical materials in the US, to support manufacturing and a clean energy future,” he said.

“We can play a significant role in helping to deliver these materials and will continue to engage in the dialogue around this.”

Northern Star boss Stuart Tonkin said he expected a Trump presidency to lead to trade tensions and increased US government spending, which was likely to support a strong gold price in both US and Australian dollars.

Wesfarmers CEO Rob Scott said he expected policies in the US to focus on improving the competitiveness of domestic businesses. “While we are in wait-and-see mode for any changes to policy, there may be lower taxes and reduced regulation – all designed to make US businesses more productive,” he said. “That is a risk for Australia as we continue to face lagging productivity – a more competitive US attracts more capital. Australia’s government needs to provide our businesses with similar support, ensuring we can secure our share of investment from global markets.

“We’ll also be closely watching for any impact of a Trump presidency on US-China relations, including changes to tariffs, given Australia’s critical relationship with China. Any impact – positive or negative – will impact Australia’s exports and our economy.”

Shell Australia CEO Cecile Wake said the company welcomed Mr Trump’s support for the gas sector. “All eyes will be on the Paris Agreement and how it plays out,” she said. “The most important thing is that we have consistency of policy.”

Originally published as Australian CEOs say they are well prepared to weather the Donald Trump 2.0 presidency