DIPLOMACY

Australia panics over Trump

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Australia’s ambassador to the United States, Kevin Rudd, recently cleared his social media account of past criticism of President-elect Donald Trump as Canberra seeks to strengthen ties with Washington.

Rudd, a former Prime Minister of Australia, posted on X (formerly Twitter) in 2020 that Trump was “the most destructive president in history” and was “dragging America and democracy through the mud.” These posts, made while Rudd was president of the US-based non-profit Asia Society, recently disappeared from Elon Musk’s platform. Rudd assumed his role as US Ambassador in 2023.

His office issued a statement explaining that the removal was “out of respect for the office of the President of the United States.” The statement noted that the decision aimed to prevent any misconception that the comments reflected his views as Ambassador or, by extension, the stance of the Australian Government.

The removal of Rudd’s comments occurred amid international efforts by world leaders and diplomats to extend congratulations to Trump. When asked about Rudd’s past remarks in March, Trump labeled the former prime minister “nasty,” adding, “I don’t know much about him. If he’s hostile, he’s not going to be there long.”

On Thursday, Australian Prime Minister Anthony Albanese expressed support for Rudd, saying he had done a “great job.” Shortly after, Albanese spoke directly to Trump, congratulating him on his election victory. “We discussed the importance of the Australia-US alliance, including cooperation on security, AUKUS, trade, and investment,” Albanese wrote on X, adding, “I look forward to working together in the interests of both countries.”

Impact on Australia if Trump imposes tariffs on China

Trump’s election has sparked concerns about potential impacts on the Australian economy should the president-elect move forward with tariffs as high as 60% on China and between 10-20% on other nations. Experts warn this could be “catastrophic” for an economy closely tied to Chinese trade, potentially slowing global growth and heightening inflation.

Reserve Bank of Australia Governor Michele Bullock and Deputy Governor Christopher Kent discussed possible consequences at a Senate hearing on Thursday. “Our initial assessment is that if he enacts moderate tariffs, such as the 10%, it may not have too much impact on us,” Bullock stated, “but if he takes more extreme measures, there could be significant repercussions.”

Kent, who oversees financial markets, warned that tariffs might strengthen the US dollar and reduce US demand for global goods. “The greatest concern is high tariffs on China, which could negatively affect Australia,” Kent added.

Following Trump’s election, US stocks rose as Wall Street reacted positively, while Australia’s ASX200 index initially fell on Thursday before rebounding in the afternoon.

AUKUS debate reignited

Trump’s victory has reignited debate over Australia’s defense ties with the US, especially the AUKUS submarine program. The Australian Greens party has renewed its call to abandon the program, citing concerns over alignment with US military strategy.

Jared Mondschein, research director at the Centre for United States Studies in Sydney, noted that the US and Australia had strong cooperation during Trump’s previous term, grounded in historical ties and a free trade agreement. Mondschein said he anticipates continuity in Australia-US defense relations and possibly a larger military budget under a Republican administration.

“Overall, I don’t expect significant changes in the direction of the Australian and US defense departments,” he concluded.

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