By Andrew Brown in Canberra

The first leaders’ debate is not the only thing looming large over the federal election, as party leaders stress they’re the best placed to navigate global economic uncertainty caused by Donald Trump.

As Anthony Albanese and Peter Dutton prepare to face 100 undecided voters at a Sky News forum in western Sydney on Tuesday, both candidates sought to pitch themselves as the safest pair of hands to navigate headwinds amid recession fears.

The prime minister said while the domestic economy has turned a corner in recent months, the risks in global markets mean it’s not the time for a change in government.

“We’re not immune from the impacts of the global economy, but what we have shown consistently is the preparedness to act for the times, to provide support for people,” he told reporters in Sydney on Tuesday.

“We are in uncertain times, but I’m absolutely certain this is not the time to cut … now is the time to manage the economy responsibly.”

But Mr Dutton said predictions of a 50 basis point cut in interest rates meant turbulent economic conditions lay ahead and voters needed certainty.

He argued the previous coalition government’s management of the economy during the COVID-19 pandemic was an indicator of how it would deal with future issues.

“We have strong and competent managers of the economy, and we can achieve that after the election with a change of government,” Mr Dutton said.

“The prime minister, of course, is completely out of his depth when it comes to economics and how to manage the economy, and he’s demonstrated that in subsequent budgets.”

Both leaders were asked if they could guarantee a recession would not happen under their watch, but neither ruled out the possibility.

The prime minister said budget repair work was well under way, while Mr Dutton said households had already been in a recession for the past two years.

Ahead of the debate, the prime minister and opposition leader also jostled for position about how to deal with the Trump administration following the tariffs.

While the decision by the US president to impose 10 per cent tariffs on Australian exports did not make sense, the government was dealing with it responsibly, Mr Albanese said.

“Because (the US is) the world’s largest economy, (tariffs have) implications for the global economy,” Mr Albanese added.

“What we are doing is preparing for that. We want to make sure that … the impact of this is minimised.”

But Mr Dutton said any implications in the US would flow on to Australia’s economy.

“If we see further actions out of the US, or retaliatory action from China or other countries, then there is a very significant chance of a recession in the US, of a global recession otherwise, and those waves, huge tsunami waves will hit our shores in no time at all,” he said.

However, internal Labor polling showed 74 per cent of those surveyed thought Mr Dutton would not have been able to negotiate a better deal for Australia with the US president.

The latest Newspoll showed Labor stretching ahead, leading 52 to 48 per cent on a two-party preferred basis.

A separate Roy Morgan poll suggested Labor was on track to be re-elected with an increased majority, leading 53.5 to 46.5 per cent.

But the outcome remains far from certain with a hung parliament still in play.