Trump's tariffs could harm Australia's economy and inflation

Australia's Treasurer Jim Chalmers warned that U.S. tariffs imposed by President Donald Trump could harm the Australian economy and increase global inflation. The OECD has downgraded its growth forecasts for both the global and Australian economies due to these tariffs. Trump's recent 25% tariffs on steel and aluminum imports, affecting nearly $1 billion in Australian sales, are set to expand to nearly all imports. Chalmers noted that while the direct impact on Australia's GDP is minimal, broader effects could be significantly worse if the trade war escalates. The OECD's latest report predicts slower growth for the U.S. and Australia, with Australian growth forecasted at 1.9% this year. Inflation in Australia is expected to decrease, but the OECD cautioned that rising trade barriers could lead to higher inflation and tighter monetary policies globally.