Stock markets plummeted and rebounded before falling again after the US president's decision to impose tariffs, which he then walked back for a 90-day pause.
As the US and China engage in tit-for-tat tariffs, the fallout from the economic measures will continue to cast a shadow over movements in the domestic economy.
While the risk of a US recession is put at almost 50-50, AMP chief economist Shane Oliver said Australia would be likely to avoid a similar situation.,,
"For Australia, the direct hit to our industries that have tariffs on them will likely be a less than 0.2 per cent drag on GDP," he said.
"Only five per cent of our exports go to the US (and) a lower Australian dollar is acting as a shock absorber to the hit from the tariffs."
Further insight is expected on Tuesday into why the Reserve Bank decided to hold interest rates at 4.1 per cent, when the minutes for the central bank's last meeting  are released.
The meeting was held just days before Mr Trump unveiled the extent of his tariff agenda, but it is expected risks from the global economy could feature in the board's discussions.
Governor Michele Bullock sought to allay concerns stemming from the tariffs in a speech on Thursday night, but said it was too early for the Reserve Bank to determine its response on interest rates.
While a 25 basis point cut is predicted at the bank's next meeting on May 20, the tariff uncertainty had led to some forecasts of a 50 basis point drop.
Each 25 basis point cut would shave about $90 off monthly repayments on a typical, $600,000 mortgage.
Despite some suggestions the Reserve Bank could call an emergency meeting, Dr Oliver said the situation had not become so bad it was warranted.
"The local financial markets are functioning well and the banking system is well capitalised with no signs of unusual stress," he said.
"In fact, an emergency meeting may just create a sense of panic. but we are of the view that the RBA will cut in May by 0.25 per cent."
Employment figures for March are set to be released on Thursday, with economists forecasting a slight uptick in the jobless rate.
The Commonwealth Bank says the unemployment rate is expected to rise from 4.1 per cent to 4.2 per cent, also predicting a further 45,000 jobs to have been created in March.
However, data from the March figures is set to be affected by the arrival of Tropical Cyclone Alfred, with the natural disaster having hit southeast Queensland and northern NSW during the survey period.
Wall Street investors have meanwhile closed the book on a turbulent week of wild swings driven by the chaos of Mr Trump's multi-front trade war, with the major indices posting solid gains on Friday as big banks kicked off first-quarter earnings season.
The Dow Jones Industrial Average rose 619.05 points, or 1.56 per cent, to 40,212.71, the S&P 500 gained 95.31 points, or 1.81 per cent, to 5,363.36 and the Nasdaq Composite gained 337.15 points, or 2.06 per cent, to 16,724.46.
Australian share futures lifted 18 points, or 0.23 per cent, to 17,112.
The benchmark S&P/ASX200 lost 63.1 points, or 0.82 per cent, to 7646.5 on Friday, while the broader All Ordinaries fell 60.2 points, or 0.76 per cent, to 7853.7.
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