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Significance

Although Rudd, a former prime minister, has been critical of Trump in the past, Canberra is expected to back him. However, the incident indicates that Australia can expect criticism from the Trump administration for its efforts to restore trade relations with Beijing while looking to Washington for security.

Impacts

Higher US tariffs will impact the competitiveness of Australian goods and may also lead to more Chinese interest in Australian markets.

High-level diplomatic dialogue between Beijing and Canberra, now almost normalised, may again be at risk over trade issues.

Australia’s efforts to develop a long-range defence capability could boost security tensions and hamper relations with China.

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