<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian Treasurer Jim Chalmers has warned that Ex-Tropical Cyclone Alfred and Donald Trump's recent tariffs will put pressure on the federal budget, which is set to be handed down next week.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers was briefly interrupted by protesters at two times during his speech before they were quickly removed.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A man and a woman held banners reading 'No new coal and gas'.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/trump-says-he-is-ending-secret-service-protection-for-bidens-adult-children-which-had-been-extended-until-july/15bc3a6f-2297-4c57-a8f9-2c610b80b659"><strong><span>Trump says he's axing Secret Service protection for Biden's adult kids</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"When will the Labor Party stop funding new coal and gas projects?" one asked as security led him away.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Thank you mate, off you go," Chalmers said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He went on to warn that Alfred and Trump together could stall growth, and lead to price increases and lingering inflation.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/treasurers-grim-warning-one-week-out-from-budget/12932def-882c-40dd-b702-f88edaf7eb8b" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers warned that the cost of the cyclone recovery could mean an immediate $1.2 billion hit to the nation's GDP.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That would push the total amount earmarked in the budget for natural disaster support to $13.5 billion.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This could wipe one-quarter of a percentage point off quarterly growth," Chalmers said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It could also lead to upward pressure on inflation from building costs to damaged crops raising prices for staples like fruit and vegetables," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We don't yet know the precise cost to our Budget, but again it will be significant."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The warnings come with inflation currently at 2.5 per cent, and </span><a href="https://www.9news.com.au/finance/inflation-monthly-consumer-price-index-january/4ad2033e-49a7-4317-a703-79e186d7a3b5"><span>core inflation passing economists' expectations</span></a><span> at 2.8 per cent last month.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/federal-budget-2025-cost-of-living-energy-bills-relief-what-to-expect-anthony-albanese-jim-chalmers-explained/8a1f5b5a-35df-4301-bf99-a5853fb484b3" rel="" target="_blank" title="Billions in cost-of-living relief is coming Australia's way this federal budget"><strong><span>Billions in cost-of-living relief is coming Australia's way this federal budget</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers also said fears of a global trade war and increasing tariffs could dampen Australia's economic outlook.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The rules that underpinned global economic engagement for more than 40 years are being rewritten," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers said that the direct impact of steel and aluminium tariffs would be manageable for Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"But when you add in the indirect effects, the hit to GDP could be more like 0.1 per cent by 2030," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In fact, over a range of scenarios, Treasury found the indirect GDP impacts of a trade war could be up to four times larger than the direct effects of tariffs on our economy.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In a world of retaliation and escalation, the impacts of tariffs are amplified, they linger for longer, resulting in a bigger reduction in GDP and a bigger increase in prices."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Despite this Chalmers signalled that reciprocal tarifs against the US will not be on the cards:</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Our response to this will not be a race to the bottom on tariffs."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers will hand down the federal budget next Tuesday night on March 25.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f"><em><strong><span>DOWNLOAD THE 9NEWS APP</span></strong></em></a><em><strong><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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