Trump’s Aussie Tariff Threats Are Delusional

Donald Trump, it seems, has been stuck in a political time warp where reality has been overtaken by delusion. The world has changed dramatically in four years, and for whatever reason, Trump is under the impression he wields forcible economic and military might. He’s about to learn the value of understanding geopolitics and economics.

Trump is intellectually illiterate on both, which is why his threat to impose a tariff on Australian steel is a demonstration of his illiteracy.

Australia is no one’s vassal. Nor should it ever be treated as one. Prime Minister Anthony Albanese has a golden opportunity to prove that to the world by calling out Trump’s latest display of economic stupidity: his proposed tariff on Australian steel.

Trump’s misguided trade policy, which seeks to resurrect a long-dead protectionist system, threatens not just Australia’s interests but the fabric of modern global commerce. If Albanese stands firm against this outdated, punitive approach, he won’t just be defending Australian jobs—he’ll be sending a message that Australia will no longer be bullied by Washington’s economic arrogance.

When Albanese yesterday renegotiated the wording of the tariffs following his phone call with Trump, it was the perfect moment to push back hard against Trump’s economic ignorance. Instead, he opted for a softer approach, an opportunity lost when firm leadership was required. It was a moment that demanded strength, not careful wording.

Albanese should have taken the moment to call out the broader economic delusions of Trump’s tariff threats. Rather than merely adjusting terms to prevent immediate damage, he should have publicly rejected the idea of tariffs outright and made it clear Australia won’t tolerate being treated as an economic pawn in Trump’s misguided trade wars. Not doing so has only emboldened Trump and left Australia vulnerable to further economic intimidation.

Trump is, if nothing else, predictable. His return to the Presidency is accompanied by the same tired, ill-informed policies that defined his chaotic first term. Among them is his obsession with tariffs, an economic weapon he barely understands but wields with reckless abandon.

His proposal to slap tariffs on Australian steel is just another chapter in his long-running trade war fantasy—a fantasy that has already failed once before.

During his first term, Trump’s tariff-heavy approach to international trade was an economic disaster. His trade war with China cost American farmers billions, forced American consumers to pay higher prices, and did little to bring manufacturing back to the US. More importantly, the world moved on. His aggressive tariff strategy didn’t make America great again—it weakened its economic standing and credibility.

The global economy has since adjusted to a new reality, where no single country can strong-arm its way to dominance through outdated protectionism. Unfortunately, Trump remains trapped in a bygone era of economic thinking, unable to grasp that the rules have changed.

Four years ago, Trump might have been able to force weaker nations to bow to his economic whims. Today, that leverage is gone. The world’s economic order is shifting, and Australia’s place in it has evolved. No longer is Australia just a passive trade partner in the shadow of the US; it has strengthened its economic ties with Asia, reinforced its relationships in the Indo-Pacific, and built robust trading agreements that do not rely on American goodwill.

Australia no longer needs the US to thrive economically. Australia has become increasingly self-sufficient, expanding its agricultural, technological, and energy sectors. Its vast natural resources, particularly in minerals like lithium and iron ore, are in high demand globally, particularly from Asian markets. Additionally, Australia’s booming renewable energy industry and strong banking sector mean that its economic future is secure without needing to rely on American trade preferences.

Conversely, America is more dependent on Australia than it cares to admit. Australian minerals fuel American industries, and Australian agricultural exports play a crucial role in global food security.

The US benefits significantly from Australia’s economic stability and its strategic geographic position in the Indo-Pacific, serving as a key partner in counterbalancing Chinese influence. Yet, Trump’s tariffs threaten to undermine this mutually beneficial relationship, demonstrating just how out of touch he is with today’s economic realities.

Aside from being the right thing to do for Australia’s economic interests, standing up to Trump is also politically profitable for Albo. The Australian public is growing increasingly wary of being seen as America’s pawn, particularly under a second Trump presidency. In a time when national identity and independence are more important than ever, Australians want a leader who is willing to push back against the excesses of US policy., because Dutton won’t. His subservience to the US’s demands will be frightening.

The coming federal election will be fought on issues of economic security, cost of living, and Australia’s place in the world. Albanese has the chance to frame himself as a strong, independent leader who prioritises Australia’s interests above all else. If he allows Trump’s bullying to go unchecked, it will only serve to reinforce the perception Australia remains overly dependent on Washington’s goodwill—a perception that could cost Labor at the ballot box.

Contrast this with the alternative: Albanese admonishing Trump for his reckless trade policies, standing firm on the principle Australia’s economic future won’t be dictated by someone whose understanding of global markets is stuck in the 1980s. That’s the kind of leadership that resonates with voters.

Trump’s return to economic protectionism is a reminder he has learned nothing from his previous failures. The world has changed, and global trade has adapted to new realities. Supply chains have been restructured, alliances have been strengthened, and new economic powers have emerged. Australia has more trade options than ever before, and it must use that leverage to push back against Washington’s outdated economic aggression.

Albanese must make it clear: Australia won’t tolerate being treated as collateral damage in Trump’s self-destructive economic war. The days of America dictating terms to its allies without consequence are over. Australia is a modern, thriving economy with its own priorities, and those priorities do not include bending to the whims of a man who refuses to grasp the complexity of the 21st-century global economy.

Albo must call out Trump’s economic folly, reject his outdated tariff policies, and make it clear why Australia will not be bullied by an American president who refuses to acknowledge the realities of modern trade.