Australia's budget addresses global trade tensions without naming Trump

Australia's budget this year seems heavily influenced by Donald Trump, though his name is never mentioned. As inflation decreases and the Reserve Bank lowers interest rates, officials worry about a potential global trade war led by the U.S. president. Instead of naming Trump, the budget documents use indirect references to describe the risks he poses to economic growth. Treasurer Jim Chalmers highlighted the threat of tariffs and trade tensions, saying that economic clouds are gathering. The budget suggests uncertainty from Trump's policies may hurt domestic investments and employment. The outlook for the global economy is pessimistic, with slow growth expected over the next three years. There are fears that trade tensions could lead to higher prices and inflation, just as the economy starts to recover. On April 2, Trump plans to impose tariffs, raising concerns for Australia, which recently faced tariffs on steel and aluminum without assurances of an exemption. Despite worries, U.S. officials hinted that some tariffs might be reduced to calm financial markets. The Australian government is also adjusting its foreign aid focus, directing more resources to the Pacific and Southeast Asia to counteract Trump’s cuts to U.S. aid in the region. However, despite the changing global landscape, the Australian government remains committed to its defense spending plans, aiming for 2.33 percent of GDP, which is lower than calls for 3 percent from defense officials. Overall, Trump's influence looms large in this budget, even if not directly acknowledged. The uncertainty surrounding his policies continues to affect plans and expectations for the future.