Australia’s Albanese secures second term, says he had ‘warm’ talks with Trump on tariffs

Australian Prime Minister Anthony Albanese said he had a “warm” conversation with U.S. President Donald Trump about trade tariffs and the AUKUS defense pact. This comes after his Labor Party’s decisive election win over the weekend.

Within hours of his election victory becoming apparent, Albanese had a phone call with U.S. President Donald Trump.

Albanese said:

“I have had three conversations with the president. I won’t go into all his comments, but he was very generous in his personal warmth and praise toward me. He was fully aware of the outcome and expressed the desire to continue working with me in the future.”

Albanese talks tariffs and AUKUS with Trump after election victory

Albanese made the remarks after clinching a decisive victory in Saturday’s federal election, where cost-of-living pressures and the looming threat of a renewed Trump-era trade war took center stage.

The Prime Minister told reporters in Canberra on Monday that he had thanked President Trump for his warm message of congratulations. He said they had discussed how AUKUS and tariffs would continue to be part of their engagement and added that he looked forward to meeting him in person.

The pair spoke about the AUKUS defense pact, a tripartite security pact between Australia, the United States, and the United Kingdom. Under AUKUS, Australia is receiving American and British assistance to build nuclear-powered submarines, its biggest single defense bet, totaling $368 billion over 30 years.

Trump, who has made a dramatic political comeback in the U.S., offered a characteristically blunt response when asked about the Australian election. He said he knew little about Peter Dutton, the defeated opposition leader, but described Albanese as “nice and respectful” and noted a friendly rapport between the two.

The tone between the two leaders marks a sharp contrast to recent hostilities. In April, the Trump administration surprised Canberra by imposing a last-minute 10% tariff on Australian steel and aluminum exports. Albanese had condemned the move as “not the act of a friend,” sparking widespread fears of a breakdown in the close partnership between the two countries.

Albanese secures historic victory as Labor overcomes challenges

Albanese’s center-left Labor Party exceeded expectations, overcoming a significant lead held by the Liberal-National Party Coalition, led by former police officer Peter Dutton, for much of the year. Labor secured at least 85 seats in the 151-member House of Representatives.

It’s also the end of the road for opposition leader Peter Dutton’s political career, at least for now. He lost his Queensland seat of Dickson and became the first opposition leader in modern Australian history to lose their seat in an election. His loss underscores a dramatic turnaround in the mood of the voters, particularly in suburban and outer metropolitan districts.

Labor’s strong performance comes after a year of economic challenges, with rising living costs, housing affordability concerns, and growing public unease over global instability shaping the campaign. Many voters expressed skepticism about U.S. President Donald Trump’s trade policies and their potential impact on the Australian economy.

Political analysts said Trump had overshadowed the conservative campaign. Efforts by Dutton’s Liberal-National Coalition to mimic Trump-style policies — such as slashing the public service and banning federal employees from working from home — may have misfired.

Albanese responds to Trump’s tariff threat with strategic economic plan

Australia, one of the closest U.S. allies, has been slapped with a 10% tariff as part of Trump’s so-called “reciprocal” duties on dozens of trade partners.

The tariffs were a central issue in the last week of the Australian election campaign. Almost half of the voters surveyed rated Trump’s trade agenda as one of their top five concerns.

The tariff announcement had roiled the stock market and caused concern about retirement savings losses for global investment funds. Economists cautioned that export-oriented industries, like mining, agriculture, and advanced manufacturing, risked job losses.

In response, Albanese unveiled a five-point plan to shield Australia’s economy from global shocks. The plan includes a $50 million relief fund for affected industries, a $1 billion “economic resilience program” to strengthen domestic capacity, and the creation of a critical minerals reserve to support future industries.

Despite his firm stance, Albanese ruled out the use of punitive tariffs. He said Australia would not provoke a trade war with the U.S. but would defend its interests through proper dialogue and diplomacy.

His low-key approach seems to work for voters. Labor picked up several historically conservative seats in Queensland and New South Wales — places likely to feel the brunt of U.S. tariff effects.

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