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Albanese looks to deepen US ties despite differences

The Straits Times

|

June 02, 2025

There are several reasons why Australia may be spared the wrath that Mr Trump has unleashed on other allies.

Australia has increased its defence spending, which is set to grow from about 2 per cent of gross domestic product currently to 2.4 per cent by 2033-2034. While it is less than the 3 per cent proposed by Pentagon policy chief Elbridge Colby and a far cry from the 5 per cent floated by Mr Hegseth in Singapore, Mr Marles' comments show Australia remains open to greater increases and is sympathetic to Washington's demands.

Australia is also one of few countries with a trade deficit with the US. While this has not spared it from Mr Trump's tariffs, it is a strength regularly raised by Australian officials during trade discussions.

But the deeper commonality both share is that the US will need to extend its military reach in the Indo-Pacific as its rivalry with China grows, while Australia, anxious about China flexing its military muscle in the region, has been willing to do more and facilitate a greater US military presence to try to ensure a sustained US commitment to the region.

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