Anthony Albanese has swiftly sought to minimise the economic impact of Donald Trump’s tariffs and maximise the political impact.
The Prime Minister has made the right moves on dealing with the trade impacts of the US’s 10 per cent across-the-board tariffs, reassuring Australians the trade exchange is low and pointing out other nations face higher tariffs. He’s offered immediate assistance to help the most-affected industries, will seek diverse markets, won’t go tit-for-tat on tariffs and left open the option of “dispute resolution”.
This is designed to reassure the public and offer a sound economic response.
Albanese has also made the right political move by deriding Donald Trump’s economic understanding, accusing the US President of an unfriendly act, highlighting “uncertain times”, warning the public will change its view of the longstanding relationships, promoting his own “Made in Australia” program and vowing to protect the fundamental service of the Pharmaceutical Benefits Scheme and offering more than a billion dollars for immediate help.
Albanese said: “The Australian people have every right to view this action by the Trump administration as undermining our free and fair trading relationship and counter to the shared values that have always been at the heart of our two nations’ longstanding friendship.”
“This will have consequences for how Australians see this relationship.
“These are uncertain times – but all Australians can be certain of this.
“Our government will always stand up for Australian jobs, Australian industry, Australian consumers – and Australian values.”
This is designed to harvest the maximum political effect of adverse reaction to Trump’s tariffs, harness a sense of national unity, showcase his own leadership, build on some of the billions he’s promised for national schemes and build on the “Canada effect” of Trump tariffs — where support for an unpopular government soared.
The details of the economic and trade impacts will take some time to work out – it’s not clear to what extent beef exports will be affected – and only last week Treasury said in the budget that the reciprocal tariffs would have a modest impact on Australian trade because only 5 per cent of our goods go to the US.
But Labor’s hoped-for political impact will be immediately apparent.
Albanese is seeking to use Trump as a vast distraction to the domestic economic and political scene, and has been painting Peter Dutton as a “friend” of Trump for some time.
Of course, Albanese’s calling out of Trump as a danger to the world’s trade is a lot easier than calling out Xi Jinping over China’s trade war with Australia, its military aggression and dropping our WTO claims against Beijing over dumping of steel in our market.
The basic issue here is to what extent Australian voters decide the US tariffs from Liberation Day are a greater threat to their cost-of-living than rising energy prices, higher interest rates, mortgage costs, fuel prices and threat of government spending and policies which threaten another round of inflation and even lower productivity than the past two years.
An external threat is manna from heaven for a leader who has lost popularity and credibility on key issues.
The timing — during an election campaign — is perfect for Albanese.
More Coverage
Watch the battler seats with a high No vote
Liberal elder Tony Abbott reckons Peter Dutton’s road to the Lodge runs through Spence.
Go to bed with Greens, wake up to a toxic society
When Adam Bandt, with his twisted logic, blames Israel for the despicable actions of Hamas you know you are entering an alternative reality.