Senate debates

Thursday, 13 February 2025

Questions without Notice

Trade with the United States of America

2:47 pm

Photo of Fatima PaymanFatima Payman (WA, Independent) Share this | | Hansard source

My question is to the minister representing the Minister for Trade and Tourism, Senator Wong. President Trump has announced a 25 per cent tariff on steel and aluminium exports. If this tariff comes into effect without an exemption for Australia, more than $200 million worth of exports could be jeopardised. A senior Trump adviser has even claimed that Australian companies are flooding the US aluminium market. Given that the Prime Minister spoke with President Trump earlier this week, can you confirm whether there has been further government contact with the Trump administration about this tariff, or are we just hoping this problem goes away?

2:48 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

The first point I'd make is that Australia and the United States have a very strong economic relationship, a very strong trade relationship and a very strong investment relationship, underscored by the Australia-US Free Trade Agreement. I would make the point that the United States has had an unbroken trade surplus with Australia since 1952, and I would say to you, Senator, that we are working very closely with the Trump administration to realise the benefits of our strong economic partnership. You would have seen the engagement from my first visit, where I had the honour of being the first foreign minister from Australia to attend a US presidential inauguration. You would have seen that I had the privilege of engaging with Secretary Rubio—

Honourable Senator:

An honourable senator interjecting

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

I know that it's Thursday of the last sitting week. I know that there's a little bit of joviality, but this is serious. This is about the nation engaging with the United States. I had the privilege of engaging with Secretary Rubio, both directly and through the Quad meeting. You'll also see that the defence minister and the Deputy Prime Minister engaged recently as well. The Prime Minister did have a call with President Trump. It was a constructive and warm discussion. The Prime Minister made a strong case for Australia to be exempt from tariffs on steel and aluminium and, as you would have seen from both the President's words and the Prime Minister—

This is the US relationship, Senator McKenzie. Perhaps you should be bipartisan.

(Time expired)

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Payman, first supplementary?

2:50 pm

Photo of Fatima PaymanFatima Payman (WA, Independent) Share this | | Hansard source

Steel production in Australia starts with iron ore, the majority of which comes from my home state of WA. Minister, if your government fails to secure an exemption, unlike former prime minister Turnbull under the first Trump administration, what's your plan for protecting WA jobs?

2:51 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

Unlike some of those in the chamber, we are one hundred per cent focused on the interests of Australia, and we think that the alliance and economic relationship with the United States should, despite Senator McKenzie's interjection, be bipartisan.

Opposition Senators:

Opposition senators interjecting

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Order! Minister, please continue.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

We are pleased that the president is giving great consideration to the exemption. We will continue to press our views. Obviously, the US administration made clear, both before and after the election, that President Trump and his administration intend to do things differently. They have set about implementing that agenda, which was the agenda the American people voted for. We will continue to engage and press Australia's interests, as you would expect.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Payman, second supplementary?

2:52 pm

Photo of Fatima PaymanFatima Payman (WA, Independent) Share this | | Hansard source

My question was specifically about WA, but that's okay. Amidst the cost-of-living crisis, the national housing crisis and the climate change emergency, we still managed to cough up $800 million to ship off to the US as the first payment towards the AUKUS submarines, which I don't think is in the best interests of Australians. Yet the US treats us with the same contempt as it does its worst enemies. Minister, is this how friends treat each other?

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

Senator Payman, I appreciate that you don't support AUKUS, but I think—if I may—that the tone of your last question flies in the face of what you're proposing in your first. We are in the process of an engagement with the US administration. We will do so, very clearly, in Australia's national interest. We will do so professionally and we will do so consistently. In terms of AUKUS, I appreciate that you have a different view to the government's. We believe AUKUS is in Australia's national interest. We also believe it is an important aspect of our relationship with the United States and the United Kingdom. On this, we are not going to agree. I disagree with what you've put in your question. We'll continue to engage, as is appropriate, with our principal strategic ally and the world's largest economic power.