National Australia Bank (ASX:NAB) Group CEO Andrew Irvine said tariffs on Australia's exports to the US will impact the economy, despite Australia's small direct exposure to the US.

During a visit to Newcastle in New South Wales, Irvine warned that aggressive tariffs could disrupt trade patterns, creating inflation in the US and globally due to retaliation from other countries.

However, Australia is well-positioned to handle tariff and trade wars, stating that diversification and better preparedness have made the country better equipped to find new markets for its goods, Irvine said.

NAB shares rose 1% in midday trade Friday.