Labor promises loans, critical minerals reserve to counter new tariffs

Labor has pledged $1bn in zero-interest loans for exporters and a new critical minerals strategic reserve to blunt the impact of Donald Trump’s tariffs.

Anthony Albanese visits the Bell Street Pharmacy in Melbourne’s Pascoe Vale South with Labor’s Member for Wills, Peter Khalil. Picture: Jason Edwards / NewsWire

Labor is promising $1bn in zero-interest loans for exporters and a new critical minerals strategic reserve to blunt the impact of Donald Trump’s “Liberation Day” tariffs.

A re-elected Albanese government would also launch a renewed push to sign new free trade agreements with the EU and India, Trade Minister Don Farrell said, and launch five new trade missions to key export markets.

The promised loans would be drawn from a new economic resilience program funded by the $15bn National Reconstruction Fund, and are likely to require legislative amendment because the fund’s investments currently need to be profitable.

Anthony Albanese said he would have “more to say” on his promised critical minerals strategic reserve, but experts were sceptical over the likely impact of such a policy, given Australia needs investors and offtake agreements to get critical minerals projects off the ground.

“For Australia it is a bit hard to see the value proposition of a strategic reserve when the customers are other countries,” University of Queensland Professor Ian Satchwell said.

“It would be more logical for the customers - like Japan, South Korea and the United States - to establish one.”

“What would make sense however would be for Australia to collaborate with customer nations … on joint production and offtake agreements.”

US President Donald Trump signs an executive order imposing “reciprocal tariffs” on America’s trading partners. Picture: Saul Loeb / AFP

Senator Farrell said Labor would look to diversify the nation’s export markets, restarting free trade talks with Europe while moving to finalise the next phase of Australia’s free trade agreement with India.

“The world has changed as of today,” he said, arguing this would open up new opportunities in Australia’s trading relationships.

“The world has changed for Europe,” Senator Farrell said.

“Europe is now subject to a much higher tariff into the United States. If they’re sensible, they will make us a better offer on the issues that made the agreement fall over last time. And we will get a free trade agreement with the EU, the largest economy in the world.”

In other measures, the Prime Minister said Labor would strengthen anti-dumping rules to protect exporters from cut-price imports, and provide $50m to help affected economic sectors expand their export markets.

Labor would also launch five new “business and investment missions” to priority markets within the first 100 days of winning government, he said.

Mr Albanese said the tariffs were “not the act of a friend” but Australia would not retaliate in kind.

“We will not join a race to the bottom that leads to higher prices and slower growth. We will stand up for Australia,” he said.

“We will continue to make the strongest case for these unjustified tariffs to be removed from our exporters.”