Australia Faces Economic Turbulence Amid U.S.-China Trade Tensions

Australia could suffer economically if U.S. tariffs on China incite a global trade war. Reserve Bank of Australia Deputy Governor Andrew Hauser cautioned about the potential risks, emphasizing Australia's economic ties to China. This concern influenced the RBA's recent interest rate cut.

Australia may face economic challenges if U.S. tariffs on China lead to a global trade war, warned Reserve Bank of Australia's Deputy Governor Andrew Hauser on Wednesday. Speaking in Sydney, Hauser highlighted the increased global trade uncertainty.

Hauser noted that Australia's economy is deeply connected to the global market, especially China. He expressed concern that U.S. tariffs could damage trade and financial connections, affecting Australia's economic stability.

The potential for a global trade war influenced the RBA's recent decision to cut interest rates, the first reduction in over four years, as a precautionary move against inflation risks and economic volatility.

(With inputs from agencies.)