Extract from ABC News
Prime Minister Anthony Albanese vowed to defend Australia's national interest in the face of US tariffs. (ABC News: Ian Cutmore)
In short:
Prime Minister Anthony Albanese has announced a five-point plan for responding to the Trump administration's 10 per cent tariff on Australian imports.
Opposition Leader Peter Dutton says he would seek a better deal by leveraging Australia's defence relationship with the United States.
What's next?
Mr Albanese says he'll have "more to say" about establishing an Australian critical minerals reserve in coming weeks.
The prime minister has outlined his government's five-point plan for responding to American tariffs if re-elected on May 3.
The United States will impose a 10 per cent tariff on Australian imports from Saturday, after President Donald Trump unveiled his long-awaited "Liberation Day" trade policy on Wednesday, local time.
"We cannot control what challenges we face," Mr Albanese told reporters in Melbourne.
"But we can determine how we respond. Australia will always respond by defending our national interest."
Opposition Leader Peter Dutton used the tariff announcement to slam Mr Albanese as "weak and missing in action", talking up defence in negotiating talks.
Mr Albanese outlined five key measures to respond to US tariffs, and left open the door to pursue a resolution under the US Free Trade Agreement or the World Trade Organization.
Mr Dutton said the Coalition largely supports all of the proposed measures.
Provide $50 million to sectors hit by tariffs
Compared to other countries in the Trump administration's firing line — such as Vietnam, which will be hit with a staggering 49 per cent tariff — Australia has fared better than other trading partners.
But the tariff could still hurt key sectors, including Australia's beef industry.
The US was Australia's largest red meat export market in 2024, worth more than $6 billion, according to Meat and Livestock Australia.
Mr Albanese said a re-elected Labor government would help affected sectors find new markets by providing $50 million to peak bodies, such as the National Farmers Federation.
"This work will be backed by five new business and investment missions to priority markets within the first 100 days of our second term," Mr Albanese said.
Establish $1 billion economic resilience program
Mr Albanese said he would create a new program to help affected sectors through the National Reconstruction Fund Corporation (NRFC).
He said his government would provide $1 billion in zero interest loans for firms to take advantage of new markets and export opportunities.
Mr Dutton said the Coalition supported the economic resilience program, but said it was best administered through Export Finance Australia.
Establish a critical minerals reserve
The prime minister was light on detail about establishing a critical minerals strategic reserve, saying "I'll have more to say on this over coming weeks".
A strategic reserve is a stockpile of resources held back from export.
Australia has some of the best critical minerals reserves in the world. (ABC News: Rachel Pupazzoni)
Australia is a significant producer of critical minerals used in technologies, such as lithium and manganese, and the government has identified the sector as a key growth area.
Mr Dutton said the Coalition had also been working on establishing a critical minerals reserve, but did not share any further details.
In a statement, the Minerals Council of Australia said a plan to establish a reserve "presents significant risk for investors", saying the industry already faces "numerous hurdles … in getting projects off the ground".
Prioritise Australian-made products
In the lead up to Mr Trump's so-called "Liberation Day", Mr Albanese had already seized the opportunity to promote a "Team Australia" message by encouraging Australians to buy Australian goods over American ones.
Anthony Albanese has been attempting to galvanise voter anger at Donald Trump by encouraging Australians to buy local. (Getty Images: Bradley Kanaris)
The government pledged $20 million in the last federal budget for its Buy Australia campaign, which would require the government to preference Australian businesses for government contracts.
"Australian businesses will be front of the queue for government procurement and contracts, maximising values for local businesses and the taxpayer," he said.
Strengthen anti-dumping laws
Mr Albanese said he would strengthen anti-dumping protections for key sectors, such as steel and aluminium, which were hit by 25 per cent US tariffs last month.
Dumping is an unfair trade practice where exporters flood the Australian market with cheap goods sold at a lower price than their normal value in their own country.
The practice hurts domestic industries and can potentially lead to job losses.
Queensland University of Technology trade law professor Felicity Deane said anti-dumping laws aimed to stop tariff-impacted exporters from trying to offload their products in Australia.
"They'd be selling it here cheaper than they'd be selling it in their countries because they're trying to just get rid of it," she said.
"That damages domestic producers, because they won't be able to sell their steel and aluminium here as cheaply because they won't be able to compete."
An Albanese government would pour $5 million into Australia's anti-dumping commission to expand its ability to monitor and investigate claims of dumped imports.
The commission can crack down on dumped imports by effectively slapping taxes on offending products.
Dutton talks up defence
Speaking to reporters in Perth, Mr Dutton attacked Mr Albanese for failing to negotiate an exemption from US tariffs.
"There's no doubt we would have had greater connection and greater communication with the White House," he said.
Peter Dutton says strengthening our defence capabilities will be central to improving Australia's standing with the US. (ABC News: Brendan Esposito)
The opposition leader indicated a Coalition government would seek a better deal by trying to leverage Australia's relationship with the US.
"We have troops in the north of our country. We have the AUKUS deal," he said.
"It is a long and abiding relationship.
"The core of an arrangement between us and the United States in resolving this matter will centre around the defence relationship."
Mr Dutton said Australia was home to a growing defence manufacturing industry, but said "our capabilities have been diminished by this government's lack of investment".
"I want to sell what we're manufacturing here into the United States, and the United States is a willing buyer for much of that product."
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