New Treasury modelling indicates that a global trade war, particularly due to Donald Trump’s tariffs, will not push Australia into recession, with only a 0.1% reduction in economic growth projected for 2025 and a slight increase in inflation. Treasurer Jim Chalmers reassured Australians following a significant share market drop, stating that Australia is better prepared than other nations to handle economic volatility. In contrast, the US economy is expected to contract by 0.8% by 2027, highlighting the relative resilience of Australia’s economic framework amid international trade tensions.
