CANBERRA - Australia's Treasurer has said that the country is well-placed to avoid a recession despite the "damage" being done by sweeping US tariffs.

New modeling released on Monday by the Treasury forecast that new tariffs announced by US President Donald Trump earlier in April will cause a 0.1-percent decline in Australia's real gross domestic product (GDP) and a temporary inflation surge of 0.2 percent in 2025.

The new modeling estimated that the US GDP will be 0.8 percent lower by 2027 as a result of the tariffs.

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Releasing the figures, Treasurer Jim Chalmers said that the government expects the implication for growth and inflation in the United States and elsewhere to be "very substantial".

"This is one of the many reasons that we describe the tariff decision to be ill-considered and unwarranted," he told reporters.

"The damage being done by that tariffs decision is now very clear for all to see."

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Chalmers said that escalating trade tensions cast a "dark shadow" over the global economy but that Australia is better-placed and better-prepared to respond to the uncertainty.

He said that the Treasury is forecasting Australia's economic growth to continue to gather pace but acknowledged that there are "substantial risks" to the outlook.