The re-elected US president is now a wildcard in the Australian federal election and presents a diabolical challenge for whoever wins it.
One of Donald Trump’s biggest supporters, Steve Bannon, had some advice for Australians during this week’s effusive ceremonies to welcome the president back to power. “Strap in,” he said. Bannon told Sky News that Trump and his team would change everything in their second term because they had learnt from their first term how to crush the globalists who would stand in their way.
And Trump allies like Elon Musk only bring more volatility to the months ahead of the Australian election. The idea that Australian leaders can manage this turbulence by rushing to meet Trump is laughable. Canadian Prime Minister Justin Trudeau flew to Mar-a-Lago, tried to placate Trump, and was ridiculed in response.
Dutton sounds confident that Trump and his allies will go after Albanese rather than him because the prime minister has been a “hard left” leader for decades. Dutton is certainly more philosophically aligned with Trump, although he has warned Liberal colleagues against starting Trumpist culture wars on issues like abortion.But the opposition leader can be just as much a target.
Here’s the key point. Miran has written detailed papers saying the United States economy could be better off with average tariffs of 20 per cent and even as high as 50 per cent. Most economists dismiss this, of course, but Miran argues the benefits outweigh the costs over time. TheThe case for tariffs is theview inside the new administration. Some of Trump’s inner circle dissuaded him from slugging Australia with tariffs on iron and steel seven years ago; it is not clear who would do that now.
This is precisely the wrong answer for the world economy, of course. A trade war means lower growth for all.
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