Donald Trump’s decision to slap tariffs on Australian steel and aluminium will hardly crush the Australian economy but it does represent a profound moment in the relationship and has opened a stark pre-election divide between the two major parties.
Gone is the softly-softly approach of the Albanese government towards Trump. The fear of poking the bear has disappeared.
Labor’s most senior figures lined up to unleash.
This was “unjustified” and an act of “economic self-harm”, said the prime minister. This was “not the way to treat a friend and partner”, said the foreign minister. Trump had misled with his earlier talk of “seriously considering” an exemption for Australia, suggested the trade minister. It’s a “dog act”, said Industry Minister Ed Husic, linking this to Australia fighting alongside the US in wars over the past century.
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Albanese reads public mood on Trump
It’s hard to remember an Australian government being so publicly critical of an American president.
The gloves haven’t completely come off, but on the eve of an election, the decision to stop playing nice and start talking frankly, gives an insight into how Labor reads the domestic public mood towards Trump.
To be clear, the government hasn’t gone full Mark Carney. Its response hasn’t reached quite the heights of the incoming Canadian prime minister, whose country is facing far more serious threats from Donald Trump, who talks about making America’s northern neighbour the “51st state”.
Carney warns the Americans are after “our resources, our water, our land, our country”. He’s rallying Canadians around the flag and his popularity is climbing.
Albanese clearly believes the public mood towards Trump is also hardening in Australia. Pollsters are picking this up too. Voters are increasingly questioning the reliability of the US as an alliance partner and whether AUKUS is worth the enormous decades-long taxpayer investment. If community support for AUKUS is eroded, the deal won’t survive long.
“Friends need to act in a way that reinforces to our respective populations that we are friends”, the prime minister warned after the Trump tariff decision. “This is not a friendly act.”
Australia will not be granted an exemption from the Trump administration’s 25 per cent tariffs on aluminium and steel imports. (Reuters: Leah Millis)
Opposition leader blames prime minister
Peter Dutton, by contrast, is laying as much blame as he possibly can at the feet of Anthony Albanese for Trump’s tariff decision.
“This is a bad day for Australia,” said the opposition leader.
“A bad day because of the decision our ally in America has made, but even worse because the prime minister is on his knees and can’t even get a phone call or a meeting with the President of the United States, our closest ally.”
Albanese has had two phone calls with Trump since his inauguration but openly admits he was unable to secure another before this tariff decision.
Not that phone calls or face-to-face meetings helped other world leaders. There have been no exemptions for anyone this time around, including the closest of US allies.
This “no exemptions” approach has been taken in part due to the Trump team’s memory of what happened when it was last in office and granted an exemption to the former Coalition government.
“When we were kind enough as a country to make those kinds of gestures to our friends”, said Trump’s trade advisor Pete Navarro, “they bit the hand that fed them and that’s not going to happen again”.
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Dutton confident of deal with Trump
He’s previously accused Australia reneging on assurances given under the Morrison government. Trump’s formal tariff proclamation signed last month specifically noted, “Australia has disregarded its verbal commitment to voluntarily restrain its aluminium exports to a reasonable level.”
Despite this much harder line now being taken by Navarro and Trump, Dutton argues he could change the president’s mind.
“If there’s a change of government, we will do a deal with the Trump administration, there’s no question about that”, the opposition leader promised. Exactly how Peter Dutton would convince Trump to do what he’s done for no other leader, is unclear.
Albanese would have much preferred to win a tariff exemption as Malcolm Turnbull did during the first Trump presidency. This outcome may be seen by some as a failure.
The government is banking on voters appreciating this time is different. Trump is different. He’s more willing to risk damaging the economy, friendships and alliances in pursuit of his tariff agenda.
There’s also a risk Dutton is misreading the public anxiety about Trump and overdoing the effort to blame Albanese. Ed Husic called the opposition leader an “appeaser”, focused on scoring a political point rather than defending “Team Australia”.
It’s a taste of what’s to come in the campaign. How to handle Donald Trump is now a central element of this election. There’s no exemption from that.
David Speers is national political lead and host of Insiders, which airs on ABC TV at 9am on Sunday or on iview.
