Federal Treasurer Jim Chalmers has welcomed the temporary easing of trade hostilities between the United States and China, describing the 90-day tariff pause as a “very positive development” for the global economy but cautioning that uncertainties remain.
“We’re very pleased to see some of these tensions de-escalate over the course of the last day or two,” Chalmers said during an interview on Seven’s Sunrise program. “But these negotiations have probably got a little way to run yet.”
The ceasefire between the world’s two largest economies has offered some relief to jittery financial markets and eased immediate concerns over a potential global recession. However, Chalmers warned against assuming the broader risks had subsided.
“It’s a very positive development, a very welcome development. But we shouldn’t pretend that all of the issues in these trade tensions around the world have been resolved with this decision,” he said. “There’s still a lot of uncertainty, a lot of volatility, a lot of unpredictability in the global economy.”
Chalmers was also questioned on the possible ramifications of the Biden administration’s push to lower domestic pharmaceutical costs in the US — a policy shift that has pressured share prices in the sector and raised concerns over international impacts, including in Australia.
“The announcement has been made, but the implications are still unclear. Some of those consequences for other countries are being speculated on but are not necessarily locked in,” he said.
Chalmers reaffirmed that Australia’s Pharmaceutical Benefits Scheme would remain unchanged in response to overseas policy shifts.