Goldman Sachs has revised its economic growth forecast for Australia in 2025, now projecting a 1.8% increase in gross domestic product, down from a previous estimate of 2%. The adjustment is attributed to anticipated negative effects stemming from the incoming Trump administration's proposed tariffs on China, which could significantly impact Australia's exports to its largest trading partner.

This shift in trade policy is expected to create ripple effects in the Australian economy, prompting Goldman Sachs to reassess its outlook for the region. President-elect Donald Trump has indicated plans to impose tariffs as high as 60% on Chinese exports, aiming to bolster U.S. firms and protect American jobs.

Given these potential changes, Goldman Sachs now anticipates a slower economic growth rate for Australia in 2025. The impact of the proposed tariffs on China could have significant consequences for Australia's exports, as China is its largest trading partner. The revised forecast projects a 1.8% increase in gross domestic product, down from the previous estimate of 2%.