Cut him some slack: Dutton says Trump relationship needs different approach

Opposition Leader Peter Dutton says Donald Trump needs to be cut “a bit of slack” as American voters reward him, while conceding not everything the US president says can be taken literally.

Just hours after Trump declared value-added taxes such as Australia’s $90 billion GST are the same as tariffs, Dutton used a wide-ranging interview to argue the president was unlike his predecessors and that this meant Australia had to take a different approach to dealing with him.

Peter Dutton says Donald Trump’s business background means nations have to adopt a new mindset in dealing with the United States.Credit: AP, Alex Ellinghausen

Last week, Trump signalled the start of a global trade war, saying he would introduce “reciprocal” tariffs on “friend and foe” from April to end American trade deficits. The US runs a trade surplus with Australia and there are no tariffs on goods moving between the two nations.

Dutton said Trump’s business background and his plans to challenge established policies and positions meant nations had to adopt a new mindset to deal with the US.

“He’s a businessman, he does deals, he brings parties together, he swaps contracts. That’s been his background, and it’s not a background probably that’s been shared by too many of his predecessors,” the opposition leader told Sky News.

“I don’t think you’re taking everything he says literally. The executive order said there would be no exemptions in relation to the tariff, and then an hour later in the press conference the president is saying maybe there is room to move.

“I think we need to cut him a bit of slack.”

On Sunday morning (AEDT), Trump made clear tariffs would include value-added taxes such as the GST and also “non-monetary” trade barriers, which could include regulations affecting things from biosecurity protections to Australia’s rules around domestic content on free-to-air television.

“For purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff,” he wrote on his social media platform, Truth Social.

“Provisions will be made for Nonmonetary Tariffs and Trade Barriers that some Countries charge in order to keep our product out of their domain or, if they do not even let US businesses operate.”

Dutton noted that US opinion polls show Trump being rewarded by American voters for his approach.

He criticised the government’s handling of the relationship with Trump, arguing recent talks between Deputy Prime Minister Richard Marles and senior members of the US government proved more that had to be done.

“With respect, Richard Marles is a nice guy, but he’s batting fairly significantly down the list in terms of the government’s key hitters,” Dutton said.

“He went [to the US] with an $800 million cheque, or whatever the figure was, and it doesn’t seem to have made any difference at all.”

Some elements of the Coalition have pressed for current ambassador to the US, Kevin Rudd, to be dropped from that position if Dutton wins this year’s federal election.

But the opposition leader said he believed at this stage Rudd should stay.

“My instinct would be to leave him in the job. But if there are insurmountable problems that he has or that the administration has with him, then that would make it very difficult,” he said.

Dutton said the main issue for the coming election was the cost of living, noting many families were continuing to struggle to make ends meet.

One of the biggest hits to families has been the cost of insurance which, since the start of 2022, has climbed by 35 per cent.

Dutton said some issues, such as the prices charged by global reinsurers, were beyond the control of a government. But he said a Coalition government might take direct action against domestic insurers to bring down policy prices.

“We need depth in the insurance pool, and we need to make sure that we’re not being ripped off by insurance companies,” he said.

“As we’ve done with the supermarkets, where we have threatened divestment if consumers are being ripped off, similarly in the insurance market, we will intervene to make sure that consumers get a fair go.”

Pressed on whether the Coalition would promise tax cuts at the election, Dutton said much would be determined by the health of the federal budget, which is forecast to be in deficit for the next four years.

“We want to reduce taxes wherever possible, but we’ll be dictated to by how much money is left in the bank. We’re not going to act in an irresponsible way,” he said. “If we can afford tax cuts, then they’ll be delivered.”

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