Australia-US Trade Talks: Jim Chalmers Leverages AU$4 Trillion Super Fund To Avoid Trump Tariffs

Treasurer Jim Chalmers and former Australian Prime Minister Kevin Rudd are using Australia's AU$4 trillion superannuation industry to try and avoid new tariffs imposed by President Donald Trump's administration.

Chalmers met with U.S. Treasury Secretary Scott Bessent on Tuesday morning to discuss the tariffs on steel and aluminium, as Australia sought an exemption from the 25% tariffs, which were set to take effect on March 12, 9News reports.

At the inaugural U.S. Superannuation Investment Summit in Washington DC, Chalmers emphasized the significance of the Australia-U.S. relationship, highlighting the current trade balance, which shows a two-to-one surplus in favor of the U.S.

The summit, held on Monday and Tuesday, and continuing in New York for two more days from Wednesday, aimed to highlight the superannuation sector's interest in boosting investment in U.S. infrastructure and assets.

With $400 billion (AU$631.6 billion) already invested in the U.S., the funds, including IFM Investors and the Super Members Council, expect this to grow to US1 trillion within a decade.

"Since 1952 we impose zero tariffs on US imports. Around half of our exports are imports into American production processes," Chalmers said. "We can supply 36 of the 50 minerals the United States lists as critical for advanced technology and for defence and for other purposes."

In his remarks, US Treasury Secretary Scott Bessent downplayed concerns over tariffs, saying that "tariff" was not President Trump's favorite word—placing it fourth behind "God, family, and love," reports Australian Financial Review.

Speaking to an audience full of Australia's largest asset managers and superannuation leaders, Bessent recognized the low level of friction between the U.S. and Australia, especially compared to the tensions with other trade partners.

"There is very little friction between the US and Australia, but with many of our other trading partners there is a great deal of friction," he said, as monitors next to him highlighted the rapid growth of Australia's $2.8 trillion superannuation sector, since its inception in 1992.

Chalmers, who was sitting in the front row, appeared to agree, nodding along to Bessent's points.

Superannuation industry's role

In his speech at the summit, Chalmers also emphasized how Australia's superannuation industry could help drive advancements in the U.S., particularly in artificial intelligence, manufacturing, and infrastructure. He stressed that Australia's superannuation funds, along with the strong trade relationship, made Australia an important partner for the U.S.

"Increasingly, our capital needs to be deployed abroad as well in markets that are safe, well capitalised and deliver the right risk-adjusted returns. That's why it is no surprise America is the biggest international investment destination for Australian superannuation," Chalmers urged.

Earlier, Rudd spoke about the growing power of Australia's superannuation pool, which was expected to increase in assets to $7 trillion by 2030. He pitched Australia as the future financial services capital of the Indo-Pacific region, calling the country "an island of strategic stability" amid global uncertainty.

Bessent on Australia's superannuation system

Before the summit ended, Bessent praised the impressive show of support from Australia's superannuation leaders, following a question from Care Super chairwoman Linda Scott on how he views the compulsory retirement savings system. While Bessent did not comment directly on his meeting with Chalmers, he remarked on Australia's confidence.

"When you are showing the confidence that you have, it is not really what one might expect for Australia," Bessent said. However, he reminded that he doesn't have the final say on tariff exemptions. "There are many other solid funds ... but the regularity and sustainability and objectives [of superannuation] are really impressive."

Former Prime Minister Malcolm Turnbull had managed to secure an exemption from Trump's tariffs during his first term. Now, Prime Minister Anthony Albanese faces pressure to achieve the same result.