New push to approve Australian mining projects after Donald Trump’s win

Australia’s gas industry has now come into sharp focus for deal-makers on the back of a Donald Trump victory in the US election.

Australia’s gas industry will be boosted under Donald Trump, amid calls for new projects to be given the green light.

President-elect Trump was likely to reshape world order and have a direct impact on Australia’s economy as part of a supercharged first 100 days in office.

Mr Trump has promised to “drill, baby, drill” to increase the United States oil production and ditch President Biden’s $1 trillion green energy plan known as the Inflation Reduction Act.

That would slash subsidies for green energy, with Mr Trump also likely to scrap America’s climate change goals that it signed up to as part of the Paris Agreement.

Australia’s gas industry will be boosted under Donald Trump, amid calls for new projects to be given the green light. Picture: AFP

Mr Trump’s moves to slow down climate change would be in contrast to Prime Minister Anthony Albanese’s major green energy plans through his Future Made in Australia scheme.

Australia’s gas industry has called on governments across Australia to embrace the change in America’s policies and allow new projects here to “avoid blackouts”.

But farmers have hit out against Mr Trump’s threat to impose tariffs, or a tax, of at least 10 per cent on all goods being imported into America, along with hardline 60 per cent tariffs on China.

Australian Energy Producers Chief Executive Samantha McCulloch said Mr Trump’s plans to ramp up oil and gas production “reinforced the need for Australia to remove barriers to investment in new gas supply that risk our global competitiveness for Capital.”

Australian Energy Producers Chief Executive Samantha McCulloch. Picture: Lyndon Mechielsen

“Without new gas supply, eastern Australia faces an increased risk of blackouts, disruptions and higher energy bills - especially in Victoria and NSW,” she said.

AMP chief economist Shane Oliver said the world was about to be shaken up with Mr Trump winning a landslide that secured him a majority in both houses of the United States parliament.

“I’m optimistic that Australia will be spared tariffs. We avoided tariffs in 2018 when Mr Trump had planned to put them on Australian steel,” he said.

“Mr Trump will be asking Australia for a better deal but we already have a trade deficit with the United States.”

Currently, 97 per cent of the trade between the United States and Australia is tariff free, with two way trade reaching almost $100 billion in 2023.

The United States sells twice as many goods to Australia, mainly in software and investment, as it imports.

Australia’s gas industry has called on governments across Australia to embrace the change in America’s policies and allow new projects here to “avoid blackouts”.

Mr Oliver said that Mr Trump was likely to hit China’s electric vehicle market with tariffs, particularly given his close relationship with billionaire Tesla owner Elon Musk.

That could lead to China dumping electric cars it cannot sell at a profit in America on Australia’s car market, potentially creating a glut of cut prices EVs here.

However, farmers have expressed concerns about the threat of tariffs on Australian goods, and the potential to spark a trade war with China.

“The US is a big market for exports like beef, wine and sheepmeat, so increased tariffs could have a material impact,” National Farmers Federation chief executive Tony Mahar said..

“Just as importantly, impacts on China could be felt here in Australia. They’re our biggest farm export destination and if growth there slows we’ll certainly feel that.

“We must have a clear strategy to maintain trade and it will be a nervous wait to see what materialises.”

Originally published as New push to approve Australian mining projects after Donald Trump’s win