Sarah Abo:
Treasurer, good morning to you. Now, I want to get to the economy in a moment because I’d like to first ask you about the flood emergency devastating your home state of Queensland. The immediate threat is, of course, safety – but beyond that, there’ll be a huge recovery and rebuild. Is Queensland receiving the federal resources it needs?
Jim Chalmers:
Yes, it is. Queenslanders are tough and resilient people but we know that these are anxious days and Australians are there for each other in difficult times like this, and the federal government will be there for people as well, working closely with the Queensland Government. I’ve already spoken this morning with Jenny McAllister, who’s our Emergencies Minister. We are working very closely with the Queensland Government. We’ve got ADF personnel already helping in Townsville. We’ve provided military helicopters to help reach isolated communities. The assistance payments are flowing, and people should check their eligibility, but we’re helping in every way that we can.
Rivers are still rising, roads are cut, electricity and water supplies are affected and when the time comes to count the cost of another natural disaster in North and Far North Queensland, we will be there to help with the rebuild as well. That will be expensive but our primary focus as you rightly point out is the people and the communities affected and making sure that people are safe.
Abo:
They need all the help they can get, that’s for sure. All right, Treasurer, let’s talk tariffs now. Donald Trump has conceded his tariffs on China, Mexico and Canada could indeed hurt the US economy. Has he been a bit knee‑jerky, do you think?
Chalmers:
I’m not going to make that sort of commentary. These are big developments out of the US but they’re not a big surprise, they were flagged in one way or another in the American election campaign. We won’t be immune from trade tensions around the world but we’re confident that we can navigate these new policies out of the US. We’re well‑placed, we’re well‑prepared, and we’ve got a different kind of economic relationship with the US than some of these other countries that are being targeted.
Abo:
Ok, so how do you navigate through that? Right, I mean, he struck a deal with Mexico putting tariffs there on hold for a month. He’s flagged the EU will be next. I mean, if he does come after Australia, will you retaliate? Malcolm Turnbull reckons he had the courage to stand up to Trump, do you?
Chalmers:
We hope it won’t come to that. The work that we’re doing is to point out to American colleagues and counterparts in the new administration that our relationship, our economic relationship, is different to those other countries. For example, America runs a trade surplus with Australia, runs a trade deficit with some of those other countries. Ours is an economic relationship of mutual benefit. And all of the work that we do, all of the discussions that we have with American counterparts will be about making sure that any changes in the global economy and coming out of DC are mutually beneficial.
Abo:
Is he actually – is he going to listen, though, Treasurer? This is the problem. I mean, the New South Wales Premier is saying that there could likely and more than likely will be job losses here in Australia as a result of what’s happening in China, because they’re just going to start dumping cheap products here instead.
Chalmers:
Already the slowdown in the Chinese economy is playing out in the Australian economy, and that’s because we’re quite trade exposed, not just to China, but we are an economy that relies very heavily on global trade. That’s why we won’t be immune from these sorts of developments. But again, we’re confident that we can navigate these changes out of the US. We are well‑placed and well‑prepared. We do have a different economic relationship, but that doesn’t mean there isn’t a lot of global economic uncertainty which will impact us here in different ways.
Abo:
And just very quickly, obviously the Deputy PM heading over to DC shortly this week. He’s got a big task ahead of him. Tariffs aside, we’re looking at security and defence. That’s also important.
Chalmers:
I think the fact that Penny Wong has already met with her counterpart, Richard Marles is about to meet his counterpart, I think that augurs well for the relationship. It’s a brand new administration and already welcoming Australian input and Australian conversations about these really important issues. I’ve also got an ask in to speak again with my counterpart, Scott Bessent, the Treasury Secretary. I think all of these conversations augur well for our ability to navigate new policies out of the US and what it means for global trade more broadly.
Abo:
Yeah, you’ve got a lot on your plate ahead of the federal election. Treasurer, thanks so much for joining us.
Chalmers:
Thank you.