Australia to prioritise ‘national interest’ amid Trump tariff turbulence, Penny Wong says

Australia’s top diplomat has made the country’s position clear as talks for a US tariff carve out grind on.

The Albanese government is looking to “advance Australia’s interests” as talks for a carve out from blanket US tariffs grind on, the country’s top diplomat says.

Donald Trump last month decided to include Australia in blanket 10 per cent imposts on most goods despite a trade surplus in the US’ favour.

It dealt another blow to Canberra’s relationship with Washington, which was already bruised on the back of Australia’s inclusion in 25 per cent tariffs on steel and aluminium.

So far, the UK is the only country to get some tariffs lifted, with a deal exempting cars, steel and aluminium.

But with most UK goods still subject to baseline 10 per cent duties, experts have questioned whether the deal was worth it.

With the election done and dusted and a new ministry sworn in, Penny Wong on Wednesday said the Albanese government would continue to make Australia’s case but not at the cost of the “national interest”.

US President Donald Trump has not exempted Australia from blanket tariffs despite a trade surplus in his country’s favour. Picture: Jim Watson / AFP

“First, we will do what we think is the right thing to do in terms of Australia’s national interest,” the Foreign Minister told the ABC.

“How do we advance Australia’s interests? How do we protect Australia’s interests, in the context of not just the trade relationship, but more generally?”

Senator Wong said it was “clear, self-evidently, including from what President Trump says” that “he envisages a very different role for America in the world”.

“And his administration does as well,” she said.

“What we can do, as Australia, is to make the sensible decisions in our interest, and importantly, to continue to develop our trading relationships with other countries, as we did in the last term.”

Foreign Minister Penny Wong says the Albanese government is looking to ‘advance Australia’s interest’ in US tariff negotiations. Picture: NewsWire / Martin Ollman

With trade with the US rocky and worrying signs coming out of China, the Albanese government has been looking to diversify Australia’s trading partners.

Among the deals being pushed is a new free trade agreement with the European Union and a critical minerals deal with India.

Scrapping the $5.2bn luxury car tax is reportedly on the table.