Independent modelling suggests that Trump's proposed tariffs could cost US consumers up to $80 billion.

Trump has proposed imposing tariffs ranging from 60% to 100% on Chinese imports, along with a 10% blanket tariff on all foreign imports.

The Treasury models indicate that such trade restrictions typically lead to lower economic growth and higher inflation.

During a Senate budget estimates hearing on November 6, 2024, Treasury Secretary Steven Kennedy discussed the potential impact of rising US trade tariffs on Australia.

Kennedy warned that Donald Trump's proposed tariff increases could negatively affect Australia's economic growth.

He explained that significant tariff increases would adversely impact the economies of both the US and China, which would, in turn, affect Australia.

These changes in the US and Chinese economies would create a ripple effect, ultimately contributing to slower economic growth in Australia.

Chalmers noted last month that the government was actively engaging in modelling to understand various scenarios stemming from the US elections, recognizing the significance of a potential change in administration.

A slowdown in China's economy is expected to negatively impact Australia's growth due to decreased demand for Australian goods.

Treasurer Jim Chalmers stressed the importance of maintaining strong global markets, warning that trade wars could be costly for Australia, which benefits from open trade.

Senator Jane Hume questioned Kennedy about whether the Prime Minister was briefed on the modelling; Kennedy confirmed that the cabinet, including the Prime Minister, was informed.

In response to concerns about the US election's impact on the global economy, Shadow Treasurer Angus Taylor shifted focus to local economic issues, asserting that the US-Australian relationship transcends individual election outcomes.