‘Isolation not the answer’, Anthony Albanese will claim against Trump’s threat to impose tariffs on foreign goods

Anthony Albanese has some stern words for Donald Trump as he tries to steer Australia clear of the US president-elect’s plan to impose huge tariffs on foreign goods.

Isolation is not the answer to tackle soaring cost of living pressures, Anthony Albanese will warn ahead of Donald Trump assuming office in the US where he has pledged to impose huge tariffs on foreign goods.

In light of Mr Trump’s presidential election campaign promise to hike up taxes on products imported to the US, which Australia is seeking to avoid, the Prime Minister will speak to his counterparts at the Asia Pacific Economic Cooperation (APEC) economic leaders summit in Lima, Peru overnight on Saturday.

Mr Albanese will tell APEC members the flow on effects of global inflation and wars abroad are “felt in the daily lives of all of our citizens”.

“From the input costs of our businesses, to the prices our people pay and the wages they earn,” he will say.

“In our interconnected global economy distance is no barrier to this uncertainty and isolation is no answer.

“We are all affected, we are all involved.”

Anthony Albanese will try to steer Australia clear of Trump’s tariff threat.

Mr Albanese will say each of the 21 economies represented at APEC is grappling with the “same set of fundamental challenges,” including a surge in inflation, the “most significant energy crisis in half a century and “alongside the devastating human toll” of wars in Ukraine and the Middle East, the “far-reaching economic consequences” of those conflicts.

“As we all understand, in every region of the world, peace, security and stability are not the dividends of prosperity, they are the foundation for it,” he will say.

Mr Albanese will warn leaders must “bring our people with us on the voyage” to demonstrate the discussions they have at international forums “translate to real benefits”.

“To prove that just as the past thirty years of breaking down tariff walls and building trade bridges has lifted millions of people out of poverty, doubled real GDP and quadrupled per capita income,” he will say.

“Open, inclusive, rules-based trade remains the best course and surest way to grow our economies and lift the living standards of our citizens.”

Anthony Albanese speaks in Lima, Peru.

It comes as Australia is poised to cash in on millions of green investment dollars if the US withdraws from lucrative climate initiatives under incoming president Donald Trump, Mr Albanese said.

The PM also defended Kevin Rudd in the wake of a senior Trump aide implying time was running out for Australia’s ambassador to the US to remain in the role.

Speaking on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Lima, Peru, Mr Albanese also revealed that in his phone call with Mr Trump last week the pair discussed organising a meeting in person, though the PM ruled out doing so at the end of his trip to South America next week.

Mr Albanese said the implications of Mr Trump’s election victory had become the “backdrop” for talks with world leaders at APEC and the upcoming G20 in Brazil.

While he did not want to “pre-empt” how Mr Trump could change US policies, particularly around climate change, Mr Albanese declared Australia was well-placed to capitalise on any companies looking for alternative places to invest.

Prime Minister Anthony Albanese in Lima, Peru on the sidelines of the Asia Pacific Economic Cooperation (APEC) summit. Picture: Clare Armstrong

“Given Australia’s position in the world and the resources that we have, there are potential benefits if there are changes in US policy,” he said.

“We’ll wait and see what (impact) that has.”

Mr Albanese said the Inflation Reduction Act introduced by outgoing President Joe Biden had resulted in “considerable capital flow” to the US that could be redirected to Australia if Mr Trump cut some of the green schemes.

“If those incentives aren’t there, then that has implications for the nature of the global economy,” he said.

“We don’t pre-empt that (Trump) government … but certainly we see that Australia has great opportunity through climate action.”

Anthony Albanese says there could be economic opportunities for Australia if Donald Trump winds back green investment subsidies. Picture: Getty Images North America

Mr Albanese said Australia’s deposits of copper, vanadium, cobalt, lithium and other critical minerals used in the energy transition, along with its solar resources and opportunity to produce green hydrogen would “drive the global economy” in the 21st Century.

Mr Albanese again ruled out an in-person meeting with Mr Trump at the end of the G20 in Brazil, saying he intended to be in parliament, which is sitting next week, by Thursday.

But he confirmed he had spoken with Mr Trump about “gathering” and he was sure it would occur in the future.

“We’ve had a very constructive beginning to our relationship with a very constructive phone call and it was very positive,” he said.

Senior Adviser Dan Scavino’s post of an hourglass was viewed as a reference to Kevin Rudd running out of time as Australia’s Ambassador to the US.

Mr Albanese also stood by Mr Rudd despite a key Trump aide sharing a cryptic post suggesting time was running out for the former Labor PM to remain as ambassador to the US due to his past criticisms of the incoming president.

Dan Scavino, who Mr Trump has reappointed as a deputy chief of staff, reshared Mr Rudd’s own statement about looking forward to working with the incoming president adding an animated GIF showing sand trickling through an hourglass to the post.

Mr Albanese said Mr Rudd was “doing a good job”.

“That’s been recognised across the political spectrum in Australia by people from Tony Abbott to Malcolm Turnbull to Peter Dutton and obviously the Australian Government,“ he said.

Prime Minister Anthony Albanese talking Peru's President Dina Boluarte during a bilateral meeting on the sidelines of the APEC Summit. Picture: AFP

The Prime Minister met with Indonesian President Prabowo Subianto on the sidelines of the summit overnight where the pair discussed the need to “de-escalate” tensions in the Indo Pacific.

Mr Prabowo said “some sort of management with the Chinese to de-escalate and lower the temperature” as well as addressing the “serious” problem of people smuggling in the region were among his priorities.

Mr Albanese also met with Peruvian President Dina Boluarte in Lima where the pair discussed a range of issues including lifting women’s economic participation and ensuring small and medium businesses benefit from global trade.

He later hosted a business dinner with attendees including senior representatives from BHP Minerals Americas, Glencore Peru and Fortescue Peru.

Mr Albanese has not locked in any formal talks with Mr Biden or Chinese President Xi Jinping who are both attending APEC and the G20, and are due to meet with each other for the first time in a year.

Originally published as ‘Isolation not the answer’, Anthony Albanese will claim against Trump’s threat to impose tariffs on foreign goods