Australia has a unique chance to boost its self-sufficiency if US President Donald Trump persists with his tariff policies, according to the head of one of the nation's largest banks.

During a speech at the International Institute of Finance event in Sydney, Westpac CEO Anthony Miller highlighted the need to avoid overreacting to tariffs and instead “keep calm and play the long game”.

“In a world where there is so much more volatility and uncertainty, remaining a transparent, consistent and reliable destination for capital and talent is something that is a differentiator for us and something that we should be working to protect and enhance,” Miller said.

This comes despite pressure from politicians and business leaders for an immediate response to Trump's 25% tariffs on all steel and aluminium imports to the US, including those from Australia, news.com.au reports.

So far, Prime Minister Anthony Albanese has rejected the idea of retaliatory tariffs on the US, instead encouraging Australians to support locally made products.

Indeed, Miller suggested that rather than retaliating, Australia could capitalise on the opportunities created by the Trump tariffs by focusing on its competitive advantages.

He pointed out that there are numerous areas within the Australian economy where the country could gain an advantage by strengthening trade relationships with partners in the region.

“There are areas where Australia has perhaps not given itself enough attention or focus,” Miller stated.

“For example, our agriculture sector and its capacity to provide quality produce to our neighbours across Asia is something we can put more thought and resources into, because it’s something that is uniquely part of our comparative advantage.”

Furthermore, Miller also urged Australia to seize this opportunity to become more self-sufficient, while recognising that the nation's past success has largely been driven by coal, gas, and iron exports.

“That could mean moving beyond simply digging resources out of the ground and adding more processing capability – something the government is looking to achieve with its Future Made in Australia strategy,” he said.

“While some of these geopolitical tensions are of concern it is forcing us to become a little more self-reliant.”

In addition, Miller commented that Australia could also take advantage of its reputation as an attractive place to live.

“We should be attracting the best human capital.

“If you think about the volatile world that we’re in, in some respects that is our comparative advantage – it’s the safety and stability of living in Australia,” he added.