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Timing of US tariffs on Australia could seriously impact election campaigns | Samantha Maiden

Peter Dutton is now trying to distance himself from the Temu Trump idea while Anthony Albanese just shocked everyone, writes Samantha Maiden.

Trump’s tariffs had a ‘big impact’ on ASX 200

As Donald Trump told the world he was saved by God to make America Great again this week, it was hard not to wonder if the lines between reality TV and the real world have become increasingly blurred.

“The Golden Age of America has only just begun,’’ the US President declared as he addressed Congress.

“It will be like nothing you have ever seen before.”

That much seems accurate.

The orthodoxy that free trade is a good thing and tariffs should be dismantled is being turned on its head.

It’s a circus act that is already having real world consequences for Australia.

As a result, the Trump effect is bleeding into the Australian election campaign.

This week, the Prime Minister, Anthony Albanese surprised just about everyone by suggesting that peacekeeping troops in Ukraine were a possibility.

Securing tariff concessions for Australia will be a tough ask for whoever is in power after the election.
Securing tariff concessions for Australia will be a tough ask for whoever is in power after the election.

He was “open” to considering any requests for help.

“There’s discussion at the moment about potential peacekeeping,’’ he said.

“We’re open to consideration of any proposals going forward, as Australia has historically played an important role in areas including in Africa, in Cyprus, in a range of peacekeeping areas.”

If they go in, it would be under the blue beret of a UN peacekeeping force.

Nevertheless, it was the most forward-leaning statement to date on the possibility of a peacekeeping role and at odds with remarks the Albanese government had made just 24 hours earlier.

Cynics suggested the PM might be trying to wedge Peter Dutton, who has had some muscular things to say about Vladimir Putin but does not support boots on the ground.

Bureaucrats familiar with the discussions make the point a coalition of the willing is not an “overnight” proposition given that a ceasefire needs to be in place before any peacekeeping troops get involved.

But considering that caretaker provisions that kick in after an election is called prohibit a government making big decisions without consulting the opposition, those negotiations could get interesting.

Mr Dutton, who was busy preparing his own farm on Wednesday night against the incoming Cyclone Alfred, has moved in recent weeks to dump on the idea he is Trump-lite or Temu Trump.

His target was the threat of President Trump’s wild agenda on tariffs.

The Albanese Government remains deeply concerned that getting tariff concessions from Trump in a second term will be “tough.”

While the US is focused on Mexico and Canada for now, eventually they will turn their attention to Australia and that could blow up during the federal election campaign.

“And I have also imposed a 25 per cent tariff on foreign aluminium, lumber, copper, steel because if we don’t have, as an example, steel and lots of other things, we don’t have a military and, frankly,’’ Mr Trump said this week.

“Tariffs are not just about protecting American jobs. They’re about protecting the soul of our country. Tariffs are about making America rich again and making America great again and it’s happening and it will happen rather quickly.

“There’ll be a little disturbance, but we’re OK with that.”

And there were more ominous signs in the President’s address that suggest Australia’s hopes of securing tariff concessions will be a tough ask.

“If you don’t make your product in America, under the Trump Administration, you will pay a tariff and in some cases a rather large one,’’ Mr Trump said.

“Other countries have used tariffs against us for decades and now it’s our turn to start using them against those other countries.

“This is happening by friend and foe,’’ he added.

“The system is not fair to the United States and never was, and so on April 2 reciprocal tariffs will kick in.

“Whatever they tax us – we will tax them!”

In theory, that could include Australia’s 10 per cent GST, which would be a genuine firestorm to hit during the election campaign.

Outgoing Canadian Prime Minister Justin Trudeau, who traded insults with Donald Trump over US tariffs this week, described the Trump administration’s approach on trade as “very dumb.”

“Now it’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do,’’ he said.

The WSJ had another crack this week, boldly suggesting they may have understated the point.

“Mr Trump is whacking friends, not adversaries,’’ it said and Australia is a case in point.

“Unbridled Tariff Man was always going to be a big economic risk in a second term, and here we are.”

Originally published as Timing of US tariffs on Australia could seriously impact election campaigns | Samantha Maiden

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Original URL: https://www.ntnews.com.au/news/south-australia/timing-of-us-tariffs-on-australia-could-seriously-impact-election-campaigns-samantha-maiden/news-story/ed0f3e10db469a75d8a8048f6c544d30