Australia, it turns out, still has friends in Washington. Perhaps not in the White House. Rather in Congress, where the Democrats, it turns out, still have a pulse.
Donald Trump’s tariffs have heightened fears of a US recession and smashed retirement savings. Protesters have taken to the streets.
Democrats, who have been nursing bruises since their November election defeat, can sense a political turning point. “Liberation Day” has liberated them to start applying the blowtorch.
In a Senate grilling, Democrat Mark Warner gave Trump’s trade representative Jamieson Greer both barrels over the decision to “whack” Australia with a 10 per cent tariff.
“We have a trade surplus with Australia,” he said in disbelief. “We have a free trade agreement! They are an incredibly important national security partner! Why were they whacked with a tariff?”
Peter Dutton’s performance in the Sky News debate was solid and his colleagues are relieved he’s now more focused on policy rather than where he might live or “indoctrination” in classrooms. (Pool: Jason Edwards)
Can Australia change Trump’s mind?
It was a far more aggressive denunciation than anything we’ve heard from Anthony Albanese or Peter Dutton.
And it drew an awkward admission from the Trump’s trade chief. Greer didn’t dispute that the US runs a trade surplus with Australia. We’re one of the few countries that buys more from the US than we send the other way.
The US Trade Representative, however, argued the US has a huge global trade deficit and “should be running up the score in Australia”.
It’s a phrase that usually refers to a footy team that’s already winning, extending its lead. The Trump Administration, in other words, is punishing a country it’s already beating, to help offset trade deficits elsewhere.
If that’s the case, it’s hard to see what Australia could offer to change Trump’s mind.
Coalition MPs are happier with Opposition Leader Peter Dutton’s performance this week. (ABC News: Matt Roberts )
Both parties talk up economic credentials
Peter Dutton last week argued he could secure a deal “quickly” with Trump. But the president is openly mocking other leaders trying to do just that.
“I’m telling you, these countries are calling us up, kissing my ass,” he said yesterday. “They’re dying to make a deal.”
In week two of the campaign, talk of striking a deal has given way to a more realistic discussion. The debate is now over how to manage the economic fall-out from Trump’s extraordinary and unpredictable behaviour.
Naturally, both sides of politics argue they have the superior credentials and point to their respective records in dealing with previous economic shocks.
Whether it was Labor’s handling of the Global Financial Crisis or the Coalition’s handling of the COVID-19 pandemic, both involved huge amounts of spending to keep the Australian economy afloat.
It’s safe to assume a similar approach would be adopted again, but most economists warn it’s far too alarmist to suggest we’re definitely heading for a recession, as Dutton suggested would happen if Labor is returned.
As one Liberal noted yesterday, Trump is still “cancer” for the Coalition campaign. There’s a view the opposition leader still needs to do more to demonstrate he’s different to the man in the White House.
But Coalition MPs aren’t giving up on this campaign, despite a shaky start. They’re happier with Dutton’s performance this week. The work-from-home mea culpa wasn’t pretty but was necessary to put seats like Robertson on the NSW Central Coast back in play.
Dutton’s performance in the Sky News debate was solid and his colleagues are relieved he’s now more focused on energy, fuel, grocery and housing prices, rather than where he might live or “indoctrination” in classrooms.
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Dutton finally reveals gas plan
More details have finally been put on the bones of the Coalition’s plan to bring down gas prices. The modelling shows it won’t deliver a major saving for households, and there’s some confusion about exactly when relief can be expected, but MPs are at least happy to have some alternative policy to point to on power prices.
Another major Coalition policy is due to be unveiled this weekend, but it too is apparently still being finalised mid-campaign.
Labor also has one more big policy shot to fire this weekend and if this week’s offerings on mental health and battery rebates are any guide, it too will involve more spending without offsetting savings.
Budget repair, as the Sky debate demonstrated, doesn’t appear to be a top order concern for many undecided voters.
The coming week of campaigning will be critical, before the Easter break and the commencement of early voting. Polls suggest the contest remains tight. Neither side is “running up the score” yet.
David Speers is national political lead and host of Insiders, which airs on ABC TV at 9am on Sunday or on iview.
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