The first task for Labor following their election victory.

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Managing the risk of global economic uncertainty is the government’s first order of business, Treasurer Jim Chalmers says, after an early-morning briefing with the Treasury secretary following Labor’s historic election victory.

Chalmers told the ABC’s Insiders program on Sunday that he had spoken with Treasury boss Steven Kennedy at 6.45am and was briefed on the possible fallout for Australia amid strained US–China relations, including financial market movements and what they might mean for the local economy.

He described this as the government’s “immediate focus”.

“We know that the direct impact on us from the [US] tariffs is manageable and relatively modest,” Chalmers told Insiders.

“But there is a huge downside risk in the global economy. I think what’s happening, particularly between the US and China, does cast a dark shadow over the global economy.”

A man in a black suit standing in front of a coat of arms background.

In March, Treasurer Jim Chalmers said there would be a $42 billion budget deficit next year. Source: AAP / Jono Searle

In April, Australia’s growth outlook was slashed by a major international body as US President Donald Trump’s sent markets into a tailspin.

The International Monetary Fund said uncertainty had reached unprecedented levels and downgraded Australia’s economic growth projection for 2025 from 2.1 per cent in January to 1.6 per cent.

If the agency’s predictions unfold, about $13 billion would be shaved off Australia’s economy.

Markets rebounded after Trump announced impacting exporters in most countries.

The federal government has also been working to secure a tariff exemption, like it did during Trump’s first term.

The Treasurer said the government was “realistic” about the potential consequences of Trump’s tariffs on the global economy but also optimistic about how Australia could weather the storm, including while rolling out domestic policies such as renewable energy and housing.

Announcing the federal budget earlier this year, Chalmers said there would be a $42 billion budget deficit next financial year and referred to global trade disruptions and wars in Ukraine and the Middle East amid .

Earlier this week, Albanese downplayed concerns Australia could face an economic downturn.

“Our government has presided over growth in every quarter since we’ve been in office. Unlike a lot of the advanced economies around the world,” he said.

The Australian Industry Group has congratulated Albanese and Labor on winning a second term but said Australian businesses face immense challenges in the coming months.

“This is the toughest time in a generation to be a business,” the group said.

“Each day sees more global trade disruption, greater market intervention, the building of trade barriers and the risk of global conflict. As a trade-expressed economy, we will not be immune to the consequences of the rapidly changing global landscape.”

In his victory speech on Saturday evening, Albanese referred to global challenges but said his government would address these issues “the Australian way” by “looking after each other while building for the future”.

— With additional reporting by the Australian Associated Press.

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