Wong looks for economic Trump card with trade in focus
Australia and the US maintain a strong economic relationship, Foreign Minister Penny Wong says, as Donald Trump retakes office as President and spikes concerns about trade tariffs.
Wong attended Trumpâs inauguration in Washington DC on Tuesday (AEDT) and said it was âsuch a privilege and honour to be the first Australian foreign minister to be invited and to attend an inaugurationâ.
There was a trade surplus in the USâs favour of about two to one, Wong said, adding sheâd raise the economic relationship during meetings.
âOf those exports from Australia that come here, about half of them go into the US production so itâs an economic relationship which is of great benefit to the United States,â she said on Tuesday.
âCertainly those stats will be something Iâll keep saying to those I meet when it comes to the very positive trade relationship we have between our two countries.â
Australiaâs former ambassador to the US, Joe Hockey, said he was less worried about tariffs â which Australia managed to get an exemption to during Trumpâs last presidency â than other changes.
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If Trump cut income or company taxes then Australia could become uncompetitive if it didnât follow, he said.
âIf they get rid of regulation ⌠then itâs very hard to do business in Australia rather than in America,â he told Nineâs Today show from Washington.
âWhat youâre going to see is that the second round impact of decisions that Trump makes in America are going to have a big impact on Australia and theyâre going to force policy change in Australia.â
Social changes in America would also flow through to Australia, Hockey added, saying Trump âhas no handbrakeâ because he wasnât worried about what the media said or a re-election bid.
âHeâs going to be off the leash and itâs all going to unfold pretty quickly,â he said.
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But La Trobe University professor Dennis Altman said Australiaâs fragile relationship with China and Pacific nations could be at risk under Trumpâs second presidential term.
Trump could use the trilateral AUKUS partnership to threaten Australiaâs recently rekindled links with its largest two-way trading partner, Altman said.
âThe whole global picture is uncertain,â he said.
The deal between Australia, the US and the UK is part of a $368 billion plan to deliver nuclear-powered submarines for Australian service.
While it has received bipartisan support in America, it is unclear how those within Trumpâs administration will act.
âThey might use the AUKUS agreement to push Australia into a position we would find very awkward,â Altman said, pointing to the Albanese governmentâs work to re-establish the relationship with Beijing.
âBut thatâs imperilled now and itâs not helped by some of the people in the opposition who are echoing the war rhetoric of Trumpâs advisers.â
Australiaâs ties with its Pacific neighbours could also be jeopardised by Trumpâs second term as he will pull the US out of the Paris Agreement on climate change, Altman said.
âIt will give ammunition to the people on the right in both the Liberal and National parties who want to ditch a commitment to lower emissions,â he said.
âThat will have huge implications for our relations with Pacific Island countries for whom this is an existential issue.â
The US also holds significant influence over global culture wars and Trumpâs term could embolden Australiaâs wealthy, right-wing figures.
âThey are going to use the Trump presidency to push back against what they regard as woke policies on gender, sexuality and multiculturalism,â Altman said.
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