Tom Minear: The dumb American move that could hurt Australia

Kevin Rudd blasted the US for throwing its allies under a bus on the economy. But Tom Minear argues Kamala Harris and Donald Trump are doing it anyway.

Shortly before he started as Australia’s ambassador to the US, Kevin Rudd made waves by accusing America of throwing its allies “under a bus” with its trade policies.

“What is the missing element in US grand strategy? It’s called the economy, stupid,” he said, as he pushed for the US to overcome its “overriding protectionist sentiment” and open its markets more to its Asian and European friends.

While it was not the language expected of a diplomat, the blunt assessment represented the bipartisan view in Canberra. It has nevertheless fallen on deaf ears in Washington DC.

Last week, Kamala Harris joined Donald Trump in opposing a Japanese company’s takeover of US Steel, a $US14.9bn ($A22.3bn) deal Joe Biden is preparing to block on national security grounds. This is, in the words of the Wall Street Journal, the dumbest economic idea of the election.

Ambassador of Australia to the United States, Kevin Rudd. Picture: Noah Willman

Once the world’s largest company, the American steelmaker now lacks the resources to compete with its Chinese rivals. Nippon Steel is promising to inject $US2.7bn ($A4bn) while keeping its Pennsylvania base, upholding its union deals, and avoiding layoffs and closures.

But the union prefers a takeover by a US firm that would create a monopoly and inevitably increase prices for customers. Combined with the fact that Pennsylvania is the most critical battleground state in the presidential election, this outbreak of bipartisanship is unsurprising.

US former President and Republican presidential candidate Donald Trump. Picture: AFP

The supposed national security implications of the deal are yet to be revealed, but they are sure to be a fig leaf. We know this because the US is simultaneously deepening defence cooperation with Japan, a country that hosts thousands of American troops, buys its military technology and is even in talks to join AUKUS.

US Vice President and Democratic presidential candidate Kamala Harris speaks at a campaign event at the Throwback Brewery, in North Hampton, New Hampshire. Picture: AFP

Why does this matter to Australia? Because if this is how America’s leaders are willing to treat Japan, they will surely do the same to us if confronted with a similar choice.

It matters for a deeper reason as well. A new United States Studies Centre poll shows 62 per cent of Australians prefer prioritising domestic manufacturing even if goods are more expensive, while just 26 per cent want to prioritise free trade even if it means fewer jobs. In fact, more Australians than Americans chose the protectionist option.

As an island nation, Australia is far more dependent on open markets than the US, but the pandemic-induced shift to self-reliance seems to be changing that consensus. If it breaks, we’ll be throwing ourselves under Rudd’s proverbial bus.

Originally published as Tom Minear: The dumb American move that could hurt Australia