Donald Trump welcomed Australian Prime Minister Anthony Albanese to the White House for high-stakes discussions focused on defence and trade. The two leaders met in the West Wing, where Trump shook Albanese’s hand and expressed optimism about their collaboration, stating, “We love them. We’re going to get a lot done.” This marks their sixth interaction, following four phone calls and a brief meeting in New York last month.
The anticipated talks, initially set to include media access in the Oval Office, were conducted behind closed doors. This decision came amid concerns surrounding Trump’s previous interactions with global leaders, which have sometimes raised diplomatic eyebrows. Following their meeting, the two leaders were scheduled to have lunch at the White House.
Albanese arrived in Washington, D.C., on the evening of March 3, 2024, amidst heavy rain but received a warm welcome from the Trumps. A bouquet of flowers accompanied a note from the President and First Lady Melania Trump, which read, “Welcome to Washington DC. We are delighted to host you at the historic Blair House and hope you have a lovely stay.”
Navigating Trade and Defence Challenges
As discussions commenced, Albanese faced several sensitive issues, particularly concerning tariffs and defence commitments. Under Trump’s “America First” policy, Australian exports have faced significant duties, leading to fears about the robustness of the United States’ commitment to Australia’s defence.
The US is Australia’s second-largest trading partner, with a historical trade surplus amounting to $281 billion since the Australia-US Free Trade Agreement took effect in 2005. In 2024 alone, the US exported more than twice the value of goods and services to Australia compared to what it imported, resulting in a surplus of $53.1 billion. Albanese’s delegation aims to leverage these figures, alongside Australia’s vast critical mineral reserves, to negotiate exemptions from US tariffs.
Australia currently faces a baseline tariff rate of 10 percent, the lowest imposed on any country. However, specific sectors have endured much higher rates, such as the 100 percent levy on pharmaceuticals and a 50 percent tariff on steel and aluminium products.
The AUKUS Pact and Regional Security
In addition to trade negotiations, Albanese is under pressure to secure assurances regarding the AUKUS defence pact, worth $368 billion, which involves collaborations with both the UK and the US. The pact aims to equip Australia’s navy with nuclear-powered submarines, including three Virginia-class vessels from the US. Recent Pentagon reviews have raised concerns about the future of the agreement, amid slow production rates in the United States.
Albanese is expected to emphasize the importance of joint defence activities, such as the annual rotation of US Marines in Darwin and the Talisman Sabre war games hosted by Australia. He will likely highlight Australia’s history of participating in US-led missions, including its involvement in the Afghanistan conflict following the September 11 attacks.
Former Prime Minister Kevin Rudd, currently serving as Canberra’s envoy in Washington, has been vocal about the significance of the AUKUS partnership, framing it as a commitment to peace and security in the Indo-Pacific region. Rudd recently hosted an AUKUS event with strong supporters from the US Congress, reiterating the depth of the defence relationship between Australia and the United States.
As the talks progress, Albanese’s ability to navigate these complex issues will be crucial for ensuring a robust partnership between the two nations, addressing both economic and security challenges that lie ahead.
