There is no ‘special relationship’ between Donald Trump and Anthony Albanese – that much is clear.
The Trump administration has just announced it will slap a 25 percent tariff on all steel and aluminium exports to the United States – including from Australia. No exceptions.
The tariff is a global act of protectionism, but when Trump was last President and imposed similar tariffs the then-Coalition government managed to secure some old fashion Australian exceptionalism.
Not this time. Albo will be under pressure to explain why he hasn’t been able to achieve what the Coalition did.
Peter Dutton may well use this export industry-destroying move to sell his potential for a better alternative relationship with the US President as a reason to change the government at the next election.
The Nationals leader, David Littleproud, has already lent into blaming Labor — and our ambassador to the US, former prime minister Kevin Rudd – for failing to avoid the new tariffs, as has Opposition trade spokesman Kevin Hogan.
‘It is time critical the Labor government ensures an exemption for Australia,’ he said.
Either way, the move is certainly damaging for an Australian export industry that has struggled for years now.
Donald Trump gave no wriggle room when he announced tariffs on steel and aluminium on all countries while flying on Air Force One to the Super Bowl on Monday Australian time
In practical terms these tariffs won’t have a significant broader impact on the Australian economy.
We don’t export an enormous amount of steel or aluminum to the US.
It’s more the perception that hurts the government, alongside the specific damage it does to an industry already struggling.
Case in point: the announcement instantly wiped $15billion from the ASX – although it has since bounced back.
The Australian government also needs to worry about what other industries might be affected by incoming tariffs yet to be announced.
Meanwhile, this bombshell feeds into the broader narrative that the current government doesn’t have what it takes politically or economically.
The perception of Albo as a weak leader is also reinforced by this latest development. Liberal campaign ads are being built around this imagery of Albo.
Now, there is still a chance that Trump backs down from the size of this latest tariff hit, as he did recently with Canada.
But there are no guarantees.
The Coalition are already going after Labor’s ambassador to the US – former prime minister Kevin Rudd – given he previously heaped criticism on Donald Trump
This decision by the US President has made clear there is no ‘special relationship’ between Trump and Albanese
With the federal election due before the end of May this announcement on tariffs is yet another indicator of the volatility Trump’s decision-making brings to democratic elections in other nations.
Allies or not, historical trade ties notwithstanding, Trump is a game changer.
But Dutton also needs to be careful.
Being seen as Trump-like, or even too close to the volatile President, could backfire if Australians don’t want to see the American circus move too close to home.