‘Uncertain times’: Dutton cries recession as the PM promises Australia is ready for US tariffs

Peter Dutton has warned Australia could be heading for a recession, as the PM promises the government is ready for the “uncertain times” that lay ahead.

Peter Dutton has warned Australia is headed for recession under the Albanese government, as he tries to reset his election campaign with a renewed attack on Labor’s economic management.

“The government hasn’t prepared our economy,” Mr Dutton said at a press conference on Tuesday, alongside shadow treasurer Angus Taylor.

“Labor has made decisions in subsequent budgets now which make it harder for the economy to function with international head winds.”

As the global economy reacts to the tariffs regime announced by US President Donald Trump, Mr Dutton was asked whether Australia was heading into a recession.

The Opposition Leader replied: “Under Labor, it is”.

“Australians do know the Coalition is a better economic manager than the Labor Party and we’ll demonstrate that after the election but this is a big decision for Australians.

“We need to make sure we don’t have a Green-Labor government in Canberra because it would be a disaster for families and for the economy more broadly.”

Earlier on Tuesday, the Prime Minister said Australia was well-placed to handle the economic headwinds from a trade war.

When asked if he could rule out a recession, he instead cited his government’s economic success.

Peter Dutton has warned Australia is headed for recession under the Albanese government. Picture Thomas Lisson / NewsWire

“We have, as a government, continued to see the economy grow, we’ve continued to see now, over the last five quarters, wages grow,” Anthony Albanese said.

He said his government had also overseen another round of tax cuts in the budget, the slowing of inflation and jobs growth.

“That hard work that we have done, if we had not have done that, we wouldn’t have been as prepared for what is happening in the global economy.”

Mr Albanese wouldn’t answer whether spending in the 2025-26 budget would make it hard for the government to deliver a stimulus package should a recession occur.

Peppered by questions about Mr Trump and economy throughout the campaign, Mr Albanese has often resorted to a simple refrain: “We live in uncertain times.

“But, I am absolutely certain that in these uncertain times, now is no time for cutting.

He was joined by shadow treasurer Angus Taylor for the first time in the campaign. Picture: NewsWire / Martin Ollman

“Now is not the time for the sort of retreat from policy that we’ve seen from the Coalition.”

Without naming the US President, Mr Albanese has taken swipes at some of the more bizarre aspects of his policy – namely, the tariffs on Heard Island and Norfolk Island.

He reiterated on Tuesday his earlier description of the sweeping “Liberation Day” tariffs as “self-harm”, and said his government was the first in the world to respond.

“But, it (the US) is also the world’s largest economy. It has implications for the global economy,” he said of the tariffs.

“We had prepared, because we are considered government, because we want to make sure that Australians the impact of this is minimised.

“That’s why we have, in advance, done the work that we did over the last three years.”

Labor has also attacked the Coalition after it watered down a promise to slash and burn 41,000 public servants, which will now be done through natural attrition and a hiring freeze, instead of redundancies.

Prime Minister Anthony Albanese said Australia was well-prepared for ‘uncertain times’. Picture: Jason Edwards / NewsWire

The cuts will be implemented over five years, with Mr Dutton promising it will still result in $42bn in savings.

Finance Minister Katy Gallagher said the maths doesn’t add up.

“So it’s pretty clear you can’t take $7bn out of the public service without sacking 41,000 people,” she said.

“He’s trying to tell us that he’s not going to do that anymore, then he has to come clean on why he’s still getting $7bn in savings.”

Education Minister Jason Clare said Mr Dutton could not guarantee the budget savings without cutting spending on departments like health, and said Australians couldn’t “trust” him.

“Now, a couple of weeks ago, Peter Dutton said … ‘look at what politicians do more than what they say.’ Well, that should be a red light, flashing, warning the Australian people, he says, ‘look at what politicians do more than what they say,’” he said.

“When he’s had the chance before, he’s cut funding to health, $50bn worth.

“It shows that you just can’t trust Peter Dutton, whether it’s cuts to health or whether it’s cutting your rights to work from home.”

Originally published as ‘Uncertain times’: Dutton cries recession as the PM promises Australia is ready for US tariffs