Prime Minister Anthony Albanese has vowed to work closely with the Trump administration as he congratulated the former president on retaking office.
US President Donald Trump was inaugurated for the second time in Washington on Tuesday (AEDT).
“I look forward to having a constructive engagement with him,” Mr Albanese told reporters in Sydney on Tuesday.
The prime minister reaffirmed Australia has strong economic, defence and national security ties with the United States following concerns Mr Trump could threaten Australia’s plan to buy nuclear power submarines.
There are also concerns about the imposition of trade tariffs.
“Of course, you want to see the economic relationship between Australia and the US continue to be strong, that is in the interests of both nations,” Mr Albanese said.
Foreign Minister Penny Wong attended with US ambassador Kevin Rudd and said it was “such a privilege and honour to be the first Australian foreign minister to be invited and to attend an inauguration”.
Senator Wong used multiple interviews to reaffirm Australia’s positive trading relationship, saying half of Australian exports to the US went into its production sector.
There is a trade surplus in the US’s favour of about two to one, Senator Wong said, adding she’d raise the economic relationship during meetings.
“So it’s an economic relationship which is of great benefit to the United States,” she said.
But former ambassadors to the US have warned about the global shake-up a Trump presidency could usher in.
Joe Hockey who was in the role during the last Trump presidency said he wasn’t as worried about tariffs – which Australia managed to get an exemption to during that term – as other changes.
If the president cut income or company taxes then Australia could become uncompetitive if it didn’t follow, he said.
“If they get rid of regulation – and God, there’s so much red tape here – then it’s very hard to do business in Australia rather than in America,” Mr Hockey told Nine’s Today Show from Washington.
“So … what you’re going to see is that the second round impact of decisions that Trump makes in America are going to have a big impact on Australia and they’re going to force policy change in Australia.
“He’s going to be off the leash and it’s all going to unfold pretty quickly.”
Arthur Sinodinos, who succeeded Mr Hockey as ambassador, said there would be risks and opportunities with some sectors being more impacted than others.
The US producing more oil and gas to reduce domestic energy prices and increase exports “will have a broad impact on energy prices across the world,” he said.
Australia further needed to remind the US what it brought to the table on defence, Mr Sinodinos said amid concerns over what Mr Trump could do to the AUKUS agreement through which Australia will buy nuclear-powered submarines.
“The message to the Americans has to be they need us,” he told ABC radio.
But Australia’s fragile relationship with China could be at risk under Mr Trump’s second presidential term, La Trobe University Professor Dennis Altman said.
Mr Trump could use a trilateral AUKUS partnership to threaten Australia’s recently rekindled links with its largest two-way trading partner, he contended.
While AUKUS has received bipartisan support in America, it is unclear how those within Mr Trump’s administration will act.
“They might use the AUKUS agreement to push Australia into a position we would find very awkward,” Prof Altman said, pointing to the Albanese government’s work to re-establish the relationship with Beijing.
