Australia’s newly re-elected Labour government has identified managing the escalating US-China trade conflict as a key foreign policy priority, Treasurer Jim Chalmers said on Sunday, amid rising global economic uncertainty and domestic voter anxiety over international developments.

Following a strong electoral mandate, Labour Party leader and Prime Minister Anthony Albanese vowed to lead a “disciplined and orderly government”, pledging to uphold unity in the face of growing geopolitical tensions.

“This government will continue with the calm and considered leadership that Australians have voted for,” Albanese said during a brief public appearance in his Sydney electorate. “The Australian people voted for unity rather than division.”

The centre-left Labour Party appeared poised to increase its parliamentary majority, with projections by the Australian Broadcasting Corporation (ABC) indicating the party would secure at least 85 seats in the 150-member lower house—an improvement on its previous 77. Vote counting is expected to resume on Monday, with over two-thirds of ballots already tallied.

Albanese becomes the first Australian prime minister in two decades to win a second consecutive term, marking a significant political milestone for the Labour Party.

Treasurer Chalmers, speaking to the ABC, underscored the gravity of external pressures facing the Australian economy. “The immediate focus is on global economic uncertainty, particularly the relationship between the US and China, and what it means for Australia,” he said. “What’s happening, particularly between the US and China, does cast a dark shadow over the global economy.”

The election campaign, which initially centred on cost-of-living concerns, took a turn as voters became increasingly alarmed by US trade policy under former President Donald Trump, particularly his April 2 tariff announcement. The move rattled global markets and raised concerns about the security of Australian pension funds, adding urgency to foreign policy discussions.

Labour’s surge came despite trailing in opinion polls for nine consecutive months until March. Public sentiment shifted after the conservative opposition coalition unveiled plans to significantly cut the federal workforce and mandate full-time office attendance—measures that drew criticism for being regressive and potentially harmful to working women.

The opposition’s missteps were further underscored by the electoral defeat of its leader, Peter Dutton, who lost his own seat—a political blow reminiscent of Canada’s recent election where the conservative leader suffered a similar fate.

“We need to really dig deep and think about who we are and who we fight for and who makes up Australia,” said Keith Wolahan, a former conservative MP who conceded his seat. “It’s clear our party has an issue in urban Australia, which is where most people live.”

The result has emboldened Labour’s stance on foreign and domestic policy, with Albanese promising to maintain Australia’s economic stability amid an unpredictable international landscape.

The Labour government’s second term will likely be defined by its ability to navigate both domestic expectations and a turbulent global order dominated by superpower rivalries.