Since Donald Trump’s reelection as US president, Australian leaders have spent considerable airtime assuring voters there’s nothing to worry about. Headlines were dominated this morning by Treasurer Jim Chalmers’ speech to the Australian Institute of International Affairs, claiming Australia is well-placed to handle any potential economic consequences of the next Trump administration.
Of course Trump is a famously unpredictable leader, both when it comes to foreign policy and the US economy. And both of those obviously have an impact on countries like Australia as well.
Here are the arguments Australia’s federal ministers have made for why there’s no reason to be concerned.
Anthony Albanese
The prime minister said last Friday he looked forward to working with Trump “in the interests of both of our nations”, highlighting what he said was the two countries’ “history of shared sacrifice, a commitment to common values, and above all, enduring respect and affection between our peoples”.
Albanese said his team had received “considerable briefings” about the potential impact of the election, including across security and economic issues. Asked about the possible impact of Trump’s promised tariffs, Albanese responded: “Australia is a supporter of trade. We’re a trading nation. And we will continue to be advocates for free and fair trade.”
Jim Chalmers
The treasurer will say in his speech that Australia’s flexible exchange rate and independent central bank will help avoid economic shocks.
“Of course we expect the incoming US administration to bring a different suite of policies, and we are confident in our ability to navigate that change, as partners,” Chalmers was preparing to say, according to Guardian Australia.
Penny Wong
The foreign minister has highlighted Australia’s “strong, long-standing and bipartisan alliance” with the US.
“We’re old allies and true friends. It’s an alliance grounded in history and driven by shared democratic values,” she told ABC radio last week.
Asked about what Trump’s reelection could mean for the AUKUS submarine pact, Wong said there was bipartisan support for it, both in the US and in Australia.
“I’m very pleased that we’ve seen Republican support in the Congress both at the principle of AUKUS and also for legislation that helps deliver it. I’m very pleased that we’ve seen public statements in support of AUKUS by senior Republicans. This is bipartisan support in the United States as well as in Australia and that is a good thing for the country,” she said.
Richard Marles
The defence minister has been on personal leave for a few days, so he has not made any personal statements since the US election results became known. But Minister for Defence Personnel Matt Keogh, gave an interview this morning where he echoed some of the same sentiments expressed by Chalmers.
“I think we’ve seen the treasurer has already noted that there’ll be some economic bumps on the road that will be affecting not just Australia, but the globe,” he told ABC News Breakfast. “And they are things that we are prepared to be able to weather through things like flexible interest rates, through an independent reserve bank, through our currency exchange mechanisms, and the way in which we have been properly managing the economy, providing surplus budgets, making sure that we are best positioned to weather economic storms, whatever may be their cause.”
Asked about the potential impact on the AUKUS alliance, Keogh echoed what Wong had said.
“One of the things that we have seen over some time now has been the real bipartisan support for the AUKUS arrangements in the United States … and we expect that to continue even under a Trump presidency, because we’ve seen that support from Trump supporters, from Trump Republicans already across the Congress for the AUKUS arrangements,” he said.
Defence Industry Minister Pat Conroy also gave an interview this morning, where he was asked about the the news ex-US secretary of state Mike Pompeo will not return in the role. Trump’s vow not to hire the AUKUS champion has been viewed as a potential blow to the submarine alliance.
“I don’t believe [it will be a blow to AUKUS],” Conroy told ABC Radio National. “Ministers of the Australian government have been engaging with Republican opinion leaders for a number of years, just as we engage with Democrat opinion leaders. And so, I’m confident that the strong bipartisan support in the United States for AUKUS will continue.”
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