US Election Lesson for Australia: Cost of Living Concerns Central to Victory, Says Minister

People shop for fresh produce at the Queen Victoria Market in Melbourne, Australia on July 4, 2023. William West/AFP via Getty Images

Australian Health Minister Mark Butler said the United States election results indicate voters want governments to focus on cost-of-living issues.

President Donald Trump and the Republican party swept the election, clinching victory in the presidential race, House, Senate, and popular vote.

His win follows a significant global rise in inflation, attributed issues such as government spending during the COVID-19 pandemic and supply shortages from the Russian-Ukraine conflict. This resulted in a severe cost-of-living crisis that overshadowed the term served by the Biden administration.

“If you do take a lesson from the U.S. election last week, it is the same lesson we take from other elections we’ve seen over the last 12 or 24 months,“ Butler told Sky News. ”Voters want to see their governments focused overwhelmingly on cost of living.”

Political Impact

Butler said it is a difficult time for households worldwide and consequently a hard time for incumbent governments.

The federal Australian election is set to take place next year.

“You are seeing that election after election, households [are] expressing a very clear view that they want their governments focused on them,” he said.

Australian Minister for Health and Aged Care Mark Butler speaks at Parliament House in Canberra, Australia, on July 28, 2022 . Martin Ollman/Getty Images

“They want their governments doing everything they responsibly can to help them through this cost-of-living crisis.”

Inflation in Australia is currently higher than the United States, rising 2.8 percent over the 12 months before September 2024.

Shadow Minister for Housing, NDIS, and Social Services, Michael Sukkar, said the U.S. election sends a strong message to the Labor government.

“If we look at the electorate in the United States and the cost-of-living issues that they were dealing with, it’s pretty clear that Australians are dealing with it at a much worse level,” Sukkar told Sky News.

He added that it also highlighted migration and housing as important issues for Australian voters in the next election.

Impact of Planned Tariff in Australia

A significant component of the Trump presidential plan is installing a blanket tariff of 10 to 20 percent across every country and 60 to 100 percent tariffs for goods imported from China.

Butler said that the 10 to 20 percent tariff on Australian imports is not the biggest concern for Australia since the U.S.-Australia trade relationship is different to the U.S.-China trade relationship.

While the United States has a trade deficit with China, the nation has a US$14.4 billion (A$21.9 billion) trade surplus with Australia.

Butler said the tariffs could indirectly impact Australian economic interests. He said the tariffs may slow global growth, potentially raising inflationary pressures in the global economy that indirectly impact Australia rather than directly changing U.S.-Australia trading arrangements.