CANBERRA - The value of Australia's commodity exports is expected to fall by 8.5 percent over the next two years as a result of global trade barriers, according to a government report.

The latest resources and energy quarterly (REQ) report, which was published on Monday by the Department of Industry, Science and Resources, forecast a modest rise in commodity export volumes over the next two years but said that earnings are expected to fall.

The report projected that the total value of Australia's commodities exports will fall by 8.5 percent from A$385 billion ($251.7 billion) in 2024-25 to A$352 billion in 2026-27.

It said that rising trade barriers and "uncertainty" over how high they will settle have disrupted trade between the United States and its major partners, causing businesses and customers to adopt a "wait and see" approach.

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"The increased caution has induced further weakness in activity. The associated uncertainty is likely to impinge on world commodity demand, as the nations that Australia supplies are impacted," the report said.

Speaking at a press conference in Canberra on Monday morning, Prime Minister Anthony Albanese said that the government has put forward very clear arguments that US tariffs on imports from Australia, which are currently set at 10 percent, should be zero.