Australian Prime Minister Optimistic on Trump Tariffs, Wishes Trudeau Well

Albanese said it is in the interests of the US and Australia to continue to implement the free trade agreement.
Australian Prime Minister Optimistic on Trump Tariffs, Wishes Trudeau Well
Canada's Prime Minister Justin Trudeau (C) talks with Australia's Prime Minister Anthony Albanese (L) during the NATO Summit in Vilnius, Lithuania, on July 12, 2023. ODD ANDERSEN/AFP via Getty Images
Monica O’Shea
Updated:
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Prime Minister Anthony Albanese has expressed optimism that Australia can avoid Trump tariffs, shining light on the benefits of the free trade agreement with the United States.

The discussion took place amid Canadian Prime Minister Justin Trudeau advising he will resign as prime minister and leader of the Canadian Liberal Party.

Trump had threatened to impose a 25 percent tariff on Canada. In light of this, Albanese was asked during an interview if this could be a cautionary tale for Australia in its dealings with Trump.

“Well, I’ve had a positive discussion with President Trump, the incoming president of the United States, as well as being the former president. We were very constructive. We spoke about Australia’s relationship with the United States when it comes to defence and national security, but also on the economy,” Albanese said.

“The United States has had a trade surplus with Australia since the Truman Presidency, and therefore it is in the United States interest for us to continue to implement the Free Trade Agreement, which has the support on a bipartisan basis in the Australian Parliament.”

Australia’s free trade agreement with the United States, which came into place in 2005, eliminated tariffs on the majority of manufactured goods traded between the two countries.

Asked if he had tried to make further contact with Trump on Australian tariffs since an initial phone call after his election, Albanese said, “Well, I’ve made the case to President Trump and he publicly said after that conversation, was very positive, as was I about our discussion.”

Albanese also wished Trudeau all the best in his future endeavours following his resignation as prime minister.

“Canada is part of the Five Eyes, along with Australia, New Zealand, the United States, and the United Kingdom. We have an important trading relationship with Canada,” Albanese said.

Albanese said every single time there had been a natural disaster in Australia, Canadians had been on the ground here, whether it be flooding events or bushfires.

When asked if he was worried if he could face the same fate as Trudeau, Albanese said, “Justin Trudeau is the leader of a long term Government in Canada. He’s a good friend of Australia. He worked closely with both Labor and Coalition governments.”

“And I wish Justin Trudeau all the very best in whatever he chooses to do next in his life. I regard him as a personal friend, but he is a great friend of Australia.”

Trudeau Resignation

The Canadian leader resigned on Jan. 6 amid growing internal battles within his own party and declining personal popularity.

Trudeau, 53, said over the holidays he had a chance to reflect and had long talks to his family about their future. He noted that throughout his career, any personal success he achieved was due to their support and encouragement

Over dinner, he told his kids about the decision to resign as party leader and prime minister after the party selects its new leader through a “robust, nationwide competitive process.”

“This country deserves a real choice in the next election, and it has become clear to me that if I’m having to fight internal battles, I cannot be the best option in that election,” Trudeau said.

“The Liberal Party of Canada is an important institution in the history of our great country and democracy. A new prime minister and leader of the Liberal Party will carry its values and ideals into that next election. I’m excited to see the process unfold in the months ahead.”

Trump Discusses Canadian Tariffs and 51st State

Meanwhile, U.S. President-elect Donald Trump again suggested Canada could become a state of the United States and linked Trudeau’s resignation to trade deficits.
“Many people in Canada love being the 51st State. The United States can no longer suffer the massive Trade Deficits and Subsidies that Canada needs to stay afloat,” Trump said on Truth Social.

“Justin Trudeau knew this, and resigned. If Canada merged with the U.S., there would be no Tariffs, taxes would go way down, and they would be totally secure from the threat of the Russian and Chinese Ships that are constantly surrounding them. Together, what a great Nation it would be.

Trump is due to take office as the 47th president of the United States at the presidential inauguration on Jan. 20.

Monica O’Shea
Monica O’Shea
Author
Monica O’Shea is a reporter based in Australia. She previously worked as a reporter for Motley Fool Australia, Daily Mail Australia, and Fairfax Regional Media.