7am From AUKUS to tariffs: Should Albanese repair ties with Trump?
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Jun 12, 2025 Karen Middleton, a prominent press gallery journalist and columnist for Inside Story, discusses the rocky waters of Australia’s defense pact AUKUS as Anthony Albanese heads to the G7 summit. She delves into the Trump administration's push for military spending and its repercussions on U.S.-Australia relations. The impact of Australia’s recent sanctions on Israeli ministers is examined, alongside trade negotiations in agriculture. Middleton also highlights how Albanese is navigating these diplomatic tensions while prioritizing national interests and fostering alliances.
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US Reviews AUKUS Pact
- The US is reviewing the AUKUS defence pact with Australia against its "America First" agenda under Trump.
- This creates uncertainty for Australia that has heavily invested in the agreement and submarine program.
US Pushes Higher Defence Spending
- The Trump administration pressures Australia to raise defence spending to 3.5% of GDP, which Albanese rejects.
- This may be a strategic move to align Australia with US defence priorities and signal seriousness of the alliance.
Australia Depends on AUKUS Submarines
- Despite local unpopularity, Australia has no backup plan besides AUKUS submarines.
- Australia needs AUKUS to succeed, especially as the US aims to boost its regional military presence.