As the Trump administration continues to rapidly reshape the U.S. economic landscape, Australia must act swiftly or risk being sidelined, warns April Palmerlee, CEO of the American Chamber of Commerce in Australia (AmCham).
Fresh from meetings in Washington, Palmerlee spoke exclusively with The Epoch Times, highlighting U.S. moves to attract global capital and investment.
“Competition for capital is fierce, and the U.S. government is moving quickly to create a very competitive landscape for global investment,” she said.
“Australia risks being left behind if we don’t focus our attention on lifting productivity, streamlining regulation, and improving permitting for new projects.”
Palmerlee said Australia had opportunities in critical minerals and rare earths.
“But unless we can offer a stable investment environment with sensible energy policy, productive regulatory reform, and competitive personal and corporate tax structures, Australia may be overlooked in favour of more attractive destinations.”
Despite the trade tensions, she remains optimistic about the resilience of Australian exports.
“Given the differential in the Australian and U.S. dollar, Aussie imports are still very competitively priced for U.S. consumers—and of the highest quality.”
The chamber CEO also suggested being more strategic in targeting U.S. opportunities.
“Australian businesses should engage with the U.S. to look for opportunities in sectors such as energy, critical minerals, defence, healthcare, digital innovation, and space,” she said.
Palmerlee also suggested individual companies or industry leaders could network with U.S. state-level governments, who have their own interests in growing their jurisdictions and attracting foreign investment.
Outlook on Australia-China Trade
Palmerlee also said the China situation would have to be monitored given Australia’s deep trade reliance on the country.In 2023, China accounted for $219 billion of Australian exports—representing 32.5 percent of the country’s total export value.
China was heavily impacted by U.S. tariffs, facing duties of up to 125 percent on its exports. In response, China announced retaliatory tariffs of 84 percent on American imports.
In response, the Trump administration raised its tariffs to 145 percent, with Beijing responding again by raising its tariffs to 125 percent.
However, despite suggestions from Beijing to unite against U.S. tariffs, the Australian government has firmly asserted its independence.
Prime Minister Anthony Albanese declined to join any anti-American coalition, reiterating that Australia would “speak for itself.”
Palmerlee also suggested that shifting global trade dynamics might yield unexpected benefits.
“Just as Australian manufacturers had to find new markets for their products when frozen out of China a few years ago, Chinese producers may have to find alternative outlets for their goods if tariffs make them uncompetitive to U.S. consumers.
“This could result in additional product being available to Australian consumers at lower prices.”
Last week, Deputy Prime Minister Richard Marles reaffirmed Australia’s commitment to diversifying trade ties, citing strengthened relationships with India, the UK, the UAE, and others.
Complementing this effort, Trade Minister Don Farrell has reportedly engaged in recent discussions with his counterparts in Japan, Singapore, South Korea, and India.
