Treasurer Jim Chalmers in talks with Donald Trump campaign and Joe Biden administration ahead of US election

Treasurer Jim Chalmers is in talks with Donald Trump’s campaign as the Government hedges its bets on the US election due in nine days.

Dr Chalmers made the admission as he ended a week-long visit to Washington DC, where he also doubled down on claims war in the Middle East was the biggest inflationary threat.

Responding to questions about the former president’s economic plans to implement massive tariffs of up to 20 per cent on goods entering the US, the Treasurer touted Australia’s support for free trade.

Economists claim Mr Trump’s plans, designed to protect American manufacturing by making foreign imports more expensive, would increase costs for US consumers.

Speaking at a press conference in Washington on Saturday, Dr Chalmers said that he did not want to “preempt policy outcomes” or engage in the “domestic politics of another country” but warned against a trade war.

“We’re aware of and cognisant of comments that former president Trump has made about tariffs, just as we follow closely the pronouncements made by Vice President Harris on the campaign trail as well,” he said.

“We’ve said consistently for some time that Australia is a big beneficiary of open markets.

“We are a big beneficiary of trade, and we want that to continue.”

Dr Chalmers also revealed that he had met with senior economic officials — in the Trump campaign and the Biden administration.

“I have met with Scott Bessent, who is a key economic adviser to former President Trump,” he said.

“I also met with (national economic adviser) Lael Brainard, who is a central player in the Biden White House.

“And so we’ve tried to make sure that we are in contact with and in discussions with major players from both sides of politics.”

Polls show the November 5 race between Mr Trump and Vice President Kamala Harris is within the margin of error in most critical battleground states.

Looming over the race is war in the Middle East, with Israel on Saturday launching retaliatory strikes at multiple Iranian military targets.

Tehran has claimed the strikes resulted in “limited damage,” as fears linger the attack could cause the conflict — so far largely fought by Israel against Hamas in Gaza and Hezbollah in Lebanon — to escalate into all out war with Iran.

Dr Chalmers this week told economic leader that more “bloodshed” in the Middle East “could put upward pressure on oil prices, prolong the fight against inflation”.

“The biggest risk to the progress that we’ve made together since the depths of COVID is conflict,” he told media, doubling down on his address.

However AMP chief economist Shane Oliver told The West the speech — which came on the heels of the International Monetary Fund projecting Australia is set to have the second highest inflation in the developed world in 2025 — was an attempt to “distract attention”.

Mr Oliver said the major cause of inflation in Australia was “homegrown” due to high government spending.

Deputy Liberal leader Sussan Ley said the Treasurer was attempting a “smoke and mirror” trick.

“He’s suggesting that the inflation that we’re seeing at home is because of factors overseas,” she told Sunrise.

“The problem is that the UK, the US, Canada and New Zealand, are all seeing inflation come down.”