Australia is facing a minimum 10 per cent tariff and is expected to keep exporting a range of goods, especially those that are hard to replace. Tariffs are likely to disrupt global supply chains and reduce confidence, leading to less spending, particularly investment.

Australia is at risk of a $27 billion collapse in income from two of its biggest exports as the US-China trade war chokes demand.

Australia is “urgently seeking” more detail on President Donald Trump’s threat to impose 200% tariffs on pharmaceutical imports to the US, Treasurer Jim Chalmers said.