Democracy and the liberal tradition have long been seen as among the most basic tenets of the American way of life. They are also the main reason the West has for the past 80 years looked up to the United States as the leader of the free world. Against this backdrop, some are still wondering if the second administration of Donald Trump is an aberration.
In his latest book, Illiberal America: A History, the Pulitzer Prize winning historian Steven Hahn forces the reader to think again, debunking any notion that we can expect a quick return to normality. Hahn reminds us that illiberalism has played as important a role as liberalism in shaping US values. The two are historically intertwined and feed off each other. And they are separated by a chasm.
On the one hand, the US is home to president Franklin Roosevelt’s liberal New Deal economics, the internationalist Marshall Plan, which was key to rebuilding Europe after World War II and establishing the rules-based world order, and some of the most open-minded higher education institutions in the world. But Hahn reminds us that the US is also home to conservative corporate-sponsored interest groups such as the National Rifle Association and a plethora of illiberal organisations from the white supremacist Ku Klux Klan to violent militia groups such as the Proud Boys.
To understand American illiberalism, Hahn takes us back to its earliest roots in the English colonies of the 1600s, anchoring his narrative firmly in US history.
The early European settlers came from diverse cultural, religious and economic backgrounds. Some succeeded in establishing large landed estates, but many remained smallholders, manual labourers and servants in their new homeland. As the settlements expanded, so did the demand for slave labour from Africa, particularly in the plantation economies of the southern states. And as the union expanded westward, it aggressively and often violently displaced the native Americans.
The result was a heterogenous, divided and stratified society that already early on fomented social conflict and illiberalism.
In the 1800s, American politics were defined by the contentious issues of slavery and the relationship between the federal government and individual states, culminating in the 1861–1865 Civil War. But abolition of slavery at the end of the war did not end the political economy of servitude, and racial segregation, discrimination and violence continued in new forms well into the 20th century. Rules and regulations, particularly surrounding voter registration, were used in many states to disenfranchise Blacks and low-income communities and remain a contentious issue to this day.
Hahn is at his best depicting the complex web of relationships that link right-wing political organisations and economic policies with corporations and philanthropies, the Christian right and more extreme social elements. Interestingly, even prohibition in the 1920s and early 1930s marked a divide, with Protestant morality and white nationalism on one side and the perceived threats presented by immigrants, Catholics, radicals and Blacks on the other. It was hardly a coincidence that it took nearly two centuries after independence before a Catholic, John Kennedy, was elected president.
Even during the more liberal periods of American history, including the New Deal era of the 1930s, the emancipated and permissive 1960s and the presidency of Barack Obama in 2009–2017, there was always illiberal pushback.
While young people in the 1960s were busy protesting against the Vietnam war, suburban resistance to racial integration policies enabled the ardently segregationist George Wallace to run in the 1968 presidential elections, albeit unsuccessfully. And when Obama took over the presidency in 2009, the ink had hardly dried on the headlines proclaiming the start of a post-racial era before the libertarian Tea Party movement emerged to contest the new administration’s policies, and a far-right militia group was formed calling itself the Oath Keepers.
Hahn describes a country that, rather than the liberal melting pot that many people imagine, is deeply divided not only along party lines but along lines of ethnicity, language, religion, wealth, educational achievement and much more. Americans’ views on issues ranging from immigration, gun rights and foreign aid to abortion and sexual identity are highly polarised. Egged on by the Trump administration, this polarisation is at present tearing the country apart.
Illiberal America is an important read for anyone trying to get their head around what is currently happening in the United States.
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We need more than two Australians who are well-known in Washington.
We do have two who are remarkably well-known, but they alone aren’t enough in a political scene that’s increasingly influenced by personal connections and therefore reputations.
The two are ambassador Kevin Rudd and the director-general of the Office of National Intelligence, Andrew Shearer. In dozens of meetings with officials, politicians, industry and think tanks in Washington on a recent trip, I repeatedly heard people mention Rudd and Shearer—but rarely other Australians.
What happens when one or both of those people are no longer in office? This country should systematically promote other people with strong reputations and work on developing more heavy hitters for the future.
Australia’s overriding national security issue is the risk that China dominates our region, establishes its authoritarian political system as the norm and uses coercion to extract what it wants from other countries at the expense of their liberty and prosperity.
While Australia must do what it can to look after its own security, we are much better placed with a strong US commitment to our region and to the alliance. It is therefore essential that our voice is heard in Washington.
Traditionally, a person’s access to US officials was determined mainly by his or her position, though reputation and contacts have always been important. But, even before the re-election of Donald Trump, reputation and contacts were pulling ahead of office as influential factors.
I saw in Washington in March and April that they were now dominant. My discussions took place in the usual departments and sensitive compartmented information facilities (known as SCIFs) but also in cafes, restaurants and bars. If you are a government official and work only 9 to 5 on Monday to Friday, on Monday morning you will be behind and scrambling to catch up.
Business these days is done everywhere all the time, and when it’s done away from the office, it’s more likely to be arranged at a personal level.
We are lucky to have Rudd and Shearer, who are well known by Republicans, Democrats and senior bureaucrats. They have both done excellent jobs in building their international networks over many decades, especially in Washington, the hub for international, security and defence debates. It shouldn’t be missed that both have spent time in think tanks and have diverse work experience across government and non-government.
Rudd is seen as a globally recognised, Mandarin-speaking expert on China. He also has great prestige as a past prime minister, which is a stronger factor in the United States, with its presidential system of government and respect for former leaders, than is generally appreciated in Australia.
Shearer is further elevated by being seen in Washington as the Australian official who is most nearly a national security adviser, a position that grabs attention in Washington.
It’s not his job that gives him this status, but his reputation for understanding global security issues. It isn’t hard to understand that we need to offer more than two people whom influential Americans are keen to meet, especially with Shearer based in Canberra.
Behind Rudd and Shearer, the bench is not deep. There are former and current intelligence chiefs, for example, who are listened to globally and have built strong relationships in the US intelligence community, including Australian Security Intelligence Organisation boss Mike Burgess.
Why do we have so few others of the status of Rudd and Shearer? The best explanation is the increasingly domestic focus of Canberra. Serving ministers and responding to a 24-hour media cycle is busy, urgent work. Talking points, possible parliamentary questions, Senate estimates, meeting records and minutes, reams of briefs absorb enormous resources.
I don’t exaggerate too much in saying that we’re incentivising the development of bureaucratic clones.
Yet we do have people in the public service with potential to become heavy hitters internationally. For the medium term, say, the 2030s and beyond, we should identify and begin cultivating them now, putting them in positions in which they can build reputations.
Foreign and security policy requires big picture strategic thinking, an understanding of defence, diplomacy, economics, politics and culture. People with this stature globally have worked through the major crises and twists of recent history.
They’ve built the confidence to be risk managers, not risk-averse. They’ve been mentored by the previous generation of giants. They’ve stood at the shoulders of influential leaders, ready to provide whispered sober advice at moments when an ability to see the forest rather than just the trees was most crucial.
They painstakingly earn their reputations, which then precede them through the doors into the most powerful rooms on earth.
We must identify those Australians who are already on their way to developing strong reputations—perhaps people in government but particularly in academia, business and think tanks.
ASPI is only one of several suitable hosts for the task, but we are also the only one with an office in Washington. Unfortunately, support for our DC office was cut in a government review of national security think tanks.
It’s poor timing to have fewer Australian voices and less convening power in Washington, which is why we aim to keep the office open.
One move that is guaranteed to deliver short-term results is for the next government to create a position of national security adviser. American officials notice that we don’t have one. So do friends in Europe and Asia.
All of our Quad partners, for example, have the role and they meet regularly, with no Australian at the table. In general, a job title may have lost its lustre in gaining traction in Washington, but the job title of national security adviser hasn’t.
Moreover, its lustre will stay with its office holder after he or she has moved on to other things.
So it’s a national priority: create people who, in an increasingly personalised Washington, are attractions not because of their jobs, but because of the wisdom for which they’re recognised. That’s what, and who, we need more of.
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India navigated relations with the United States quite skilfully during the first Trump administration, better than many other US allies did. Doing so a second time will be more difficult, but India’s strategic awareness and manoeuvrability will help it work with Donald Trump’s America once again.
The chaotic early months of the Trump administration have shown Washington’s partners that they must carefully navigate relations with the US for the next few years.
Indo-Pacific partners will likely fare better than European ones, as China appears to be a key and continuing concern for the US. And among Indo-Pacific partners, India probably stands to do better than others. India generally and Prime Minister Narendra Modi in particular show strong understanding of the game when they refrain from reacting to Trump’s negative comments.
This is unusual: the Modi government has usually been somewhat sensitive to outside criticism. Modi may be looking to the day when Trump moves on from whatever unpalatable comments he makes.
The bilateral relationship saw impressive wins during the first Trump administration. The US changed the name of its Pacific Command to the Indo-Pacific Command, acknowledging of the growing strategic role of India in the region. The US also granted India Strategic Trade Authorization Tier-1 status. This provided India with license-free access to a range of military and dual-use technologies and was a clear recognition of the enhanced confidence in US-India strategic partnership. As well as this, India developed and maintains multiple tracks of engagement with the US, including through its national security advisor, affording it greater flexibility.
There were also minilateral successes, with the Quad’s rejuvenation recognising India’s importance to the US. Many of the improvements made during the Trump administration were further strengthened under Joe Biden’s presidency.
On the other hand, Russia’s invasion of Ukraine put India in a difficult situation because of New Dehli’s traditionally good relations with Moscow. India was unhappy with Russian President Vladimir Putin’s naked aggression, but also reluctant to abandon its old partner, leading to some unhappiness in Western capitals with what was seen as India’s hypocrisy. In part, India’s reticence to upend its relationship with Russia was due to a lack of confidence that the US’s shift to New Delhi (and away from Beijing) was permanent—a view that other US allies may now understand better than they did.
Trump and his administration appear to favour a transactional approach to dealing with the Putin regime. This is causing concern for the US’s NATO allies while also making it less likely that the US will pressure India on its relationship with Russia. New Delhi can likely breathe easy on this point for the next four years.
But Trump’s tariff pressure presents other challenges. In the previous term, India managed to satisfy Trump with a few concessions alongside general goodwill and ideological messaging. This time, Trump is clearly much more determined and focused, especially on countries like India with which the US has a significant trade deficit.
This will likely be harder for India to manage this time around. India will have to concede much more, but it still has options to satisfy Trump. India may be helped by the fact that the initial tariff roll-out has been chaotic and confusing, with tariff rates and targets being changed seemingly every day.
Most tariffs have been postponed for few months, and the US is welcoming offers to negotiate bilateral trade agreements. This gives New Delhi a chance to once again use its diplomatic skills to secure a reasonable deal with Washington. Amid US-China tensions, India will also be acutely aware of the opportunities presented by Trump’s increased focus on China’s unfair trade practices.
India has room to manoeuvre. For example, automobile tariffs are one of Trump’s key focuses. Indian tariffs on direct automobile imports are high, at more than 100 percent. New Delhi appears reluctant to lower them, partly because of fears that it could hurt India’s thriving domestic automobile and auto parts manufacturing sector.
However, India will not be an easy market for US automakers to break into, even with low or no tariffs. Both General Motors and Ford, who had entered the Indian car market and established factories in India to compete more effectively, found that not all their products well suited the market. Even if India removes tariffs, it is difficult to imagine US manufacturers competing effectively in India.
Similarly, India has some options on the energy front too to entice Trump. India’s external affairs minister, Subrahmanyam Jaishankar, recently suggested that India might amend its nuclear liability law, which has prevented the US entities from entering the Indian nuclear sector.
US nuclear engineering company Westinghouse planned to build nuclear plants in India until a bill passed in 2010 imposing such onerous liabilities that it effectively prevented new plants from being built. If India does change the liability law or its provisions, it could stimulate not only the US nuclear power industry but also its own nuclear sector.
India could also buy petroleum from the US, reducing its trade surplus with the US of nearly US$50 billion and pleasing Trump.
India’s annual oil import bill is now well north of US$100 billion and will only increase. Redirecting purchases to the US would have negligible effect on the Indian economy.
Finally, India could buy more weapons from the US. Trump does appear to want to sell more US weapons, and India needs to keep buying as it faces a growing threat from China. There has already been some talk of the US offering Lockheed Martin F-35s.
Though dealing with Trump may be difficult, New Delhi does have some options, especially if it keeps turning the other cheek to his criticism. The Indian government does appear to recognise the need to keep Trump happy. This combination of strategic awareness and room to move may help India to manage the second Trump administration better than other US partners do.
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Sunday marks three months since Donald Trump’s inauguration as US president. What a ride: the style rude, language raucous, and the results rogue.
Beyond manners, rudeness matters because tone signals intent as well as personality.
Trump’s version of going rogue means to leave the herd, or to become savage or destructive. His rogue is about means and policy, shifting where the United States stands and what it stands for.
Manners maketh the man, but means maketh government.
Berating Ukrainian President Volodymyr Zelenskyy in the White House was the rough and rude stuff politicians usually do to each other behind closed doors. The rogue moment of policy significance and shocking symbolism was at the United Nations when the US sided with Russia in voting against resolutions to mark the third anniversary of the full-scale invasion of Ukraine. Trump embraces foes as he throws friends overboard, aiming for a quick peace in Ukraine by giving Russian President Vladimir Putin most of what he wants.
The US president is driven by his will, his wants and his whims. The only metric that counts is power. Get a great deal. Make a profit. Punish enemies.
Trump calls his tariff wall a ‘declaration of economic independence’ that will make the US ‘good and wealthy’. Offering a ‘stupidity theory of tariffs’, Nobel Prize economist Paul Krugman responds that Trump launches ‘a global trade war’, destroying 80 years of credibility in three months with ‘wild zig-zags’.
What’s so challenging about Trump’s style is that zig-zags are the strategy.
The US sets a 145 percent tariff on China’s goods; China’s answers with a 125 percent tariff on US goods. The world’s top two economies impose embargoes on each other. Trump may, indeed, zig to clinch a beautiful deal with China. But the isolationist and nativist standard is set. Trump believes that for decades the US ‘has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike’.
The US had the largest role in creating today’s world; under Trump the US is scared of the world it made, declaring a pox on Pax Americana.
Trump’s three months show he has learnt from his first term, when the adults in the room were a constant check on his will and whims. A more experienced president leading his remade Republican Party means fewer adult restraints.
Trump’s new treasury secretary, Scott Bessent, qualified for the adult label by getting the president to put a 90-day pause on the reciprocal tariffs announced on 2 April, because the bond market was melting. Wall Street, though, speculates Bessent won’t last long, because the first Trump administration showed that telling adult truths to the wild king soon ends cabinet careers.
Trump now attacks the foundations of Washington to get systemic shifts. He smashes so his vision can arise atop the rubble. In contrast, during the first-term soap opera, courtiers vied to handle the king while Washington kept ticking (many administration jobs were still vacant a year after Trump’s first inauguration).
The president luxuriates in the pomp, while his administration wields sharper authority. He still enjoys the king label, but the court politics forms factions.
Because loyalty is what Trump values most, the true-believer faction gathers around the MAGA cap that reads ‘Trump was right about everything’.
Standing amid the believers are those who see Trump as the perfect instrument to ‘burn down Washington’, as per the original subtitle of a book by the head of the Heritage Foundation on how to institutionalise Trumpism by torching institutions. The foundation created Project 2025 to write the conservative agenda for Trump’s administration ‘to take down the Deep State and return the government to the people’.
The tech bros, led by Elon Musk, want Trump to remove any Washington restraints so algorithms can get on with eating the world. The tech bro discomfort over trade war was voiced by Musk’s attack on Trump’s tariff tsar, Peter Navarro, as ‘dumber than a sack of bricks’. The tech vision of a borderless world crashes against Trump’s love of borders.
The China hawks fly with Secretary of State Marco Rubio and National Security Advisor Michael Waltz. Rubio’s version of Trump foreign policy starts by stating that the post-Cold War period of US unipolar dominance was an ‘anomaly’. Now, Rubio says, the US faces ‘a multipolar world, multi-great powers in different parts of the planet. We face that now with China and to some extent Russia, and then you have rogue states like Iran and North Korea you have to deal with.’
The view that the US is no longer as powerful as it was is Trump’s central argument. His answer is America First. The fear for allies is the prospect expressed by Australia’s previous ambassador to the US, Arthur Sinodinos, that this might become America Only.
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The world is trying to make sense of the Trump tariffs. Is there a grand design and strategy, or is it all instinct and improvisation? But much more important is the question of what will now happen, as new possibilities emerge from the shock effect of the tariff announcements and from subsequent moves and counter-moves.
For many, the United States is behaving erratically and imprudently, not least by lashing out at its allies and partners and by confusing financial markets. It’s risking its credibility by engaging in what appear to be irrational and self-harming actions that have already generated systemic financial shocks. Confidence in US leadership and economic rationality is being shaken.
To judge what might happen next, one must see the through-line—namely, Trump’s long-held grievance about what he sees as unfair global economic arrangements and widespread freeriding on the US, and his willingness to deploy all instruments of power to set this right. For Trump, the functioning of the global financial and trading system has seen the US incur the costs of entrenched trade deficits, hollowing out of the US industrial base and overvaluation of its currency, a consequence of the reserve status of the US dollar and US Treasury bonds.
At the same time, the cost of underpinning global security since 1945, through the so-called Pax Americana, has been borne disproportionately by the US taxpayer, who now carries US$36 trillion in federal debt. For the first time in its history, the US is spending more on debt interest than on defence. Meanwhile, allies and partners, with few exceptions, have minimised their defence spending wherever possible.
It is clear that Trump will no longer tolerate a situation where other countries gladly consume the security that the US produces, at significant cost to US taxpayers, without contributing materially to that security and while enjoying the prosperity it brings.
Bargains regarding prosperity and security are often intertwined. The 1944 Bretton Woods agreement was negotiated at a time when the postwar security order was being shaped. The deal ended in August 1971, when President Richard Nixon suspended the US dollar’s convertibility to gold and introduced a 10 percent import tax to compensate for ‘unfair exchange rates’—overvaluation of the US dollar. In September 1985 in what became known as the Plaza Accord, the US agreed with leading western economies that the US dollar would be devalued in a managed fashion to tackle a mounting US trade deficit. All the while, the US kept up its end of the bargain in protecting allies and partners.
We should not be surprised that from time to time, the US might deploy its enormous strategic and financial power to reset the terms of global prosperity and security. Whether by design or otherwise, we appear to be in another such moment.
Through the shock of the Trump tariffs, the US has created for itself an extraordinary opportunity to restructure the global trading and financial system, with two twin objectives in mind. These are to increase the relative gains from that system for Americans and to reallocate the costs of Pax Americana, so that they are borne more by allies and partners and less by US taxpayers.
To this end, the US should pursue a new global agreement, which might be called the Pax Americana Accord. It should bring all issues to the table in the process, so we are not dealing later with other, related shocks—say, with US currency or debt issues—or with doubts over US alliance commitments.
The best way to do this, in a way that would take maximum advantage of the opening that the tariff shock has created, would be for Trump to call an urgent meeting of what might be termed the ‘G7+’. This would not be a meeting whose objective would be to craft and issue a worthy but forgettable communique. Terms would be set out and agreed in outline, under the threat of total trade war. The details could then be hammered out over the remaining balance of the 90-day pause period.
The G7+ would consist of the US, Germany, Japan, Britain, France, Italy and Canada (as G7 members), along with India, Brazil, South Korea, Australia, Mexico, Indonesia (representing itself and the rest of Southeast Asia) and the European Union (in its own right and also representing the 24 non-G7 EU members). The G7+ would represent 67 percent of global GDP. Others, such as Turkey, Saudi Arabia, Switzerland, Argentina, the United Arab Emirates and Israel, could sign on to the new accord at a later date, as might Taiwan.
The meeting would agree the broad outlines of a Pax Americana accord, which would ultimately address and, as necessary, resolve the following issues:
—US chronic trade deficits and US complaints about tariff and non-tariff barriers to its exports;
—China’s deliberate manufacturing overcapacity, which is creating global trade and financial imbalances, unacceptable supply chain dependencies and a dangerous capacity for rapid war production, all endangering the security and economic resilience of the US and its allies and partners;
—China’s re-exports to the US by way of countries such as Mexico, Vietnam and Indonesia, which would have to be blocked, lest China evade what will be crippling US tariffs and other trade barriers (if a US-China deal cannot be separately done);
—Technological de-risking in relation to Chinese goods and services, to prevent China from gaining security advantages by passing high-risk technology into foreign economies;
—The enduring role of the US dollar as the world’s reserve currency, a global public good that the US provides;
—Long-term funding of the US Treasury, whereby US debt underpins global security (by paying for US military capabilities, another global public good) but where others who consume that security also enjoy income returns as debtholders and are not liable for the recapitalisation of those capabilities;
—US concerns about its industrial base, the strength of which also underpins global security and so represents another global public good;
—Defence spending of US allies and partners, most of which will need to build greater capacity to defend themselves without having to rely on US forces, at least in the early stages of a war;
—Potential for co-production of defence capability, in which allies and partners make larger contributions to US development programs; and
—Strategic reservation of critical minerals and other tangible assets by US allies and partners and the granting to the US of concessional access to these assets.
This is an ambitious agenda. A Pax Americana accord would address US trade grievances but more importantly would better spread the costs and risks of global security. It would reset the terms of Pax Americana such that it could be sustained. The US would be reassured about its strategic solvency, and allies and partners would take an active stake.
This would require negotiation of complex deals and arrangements. Achieving it would mean treading a narrow path. Careful and precise execution would be required, especially to reassure financial markets, which are always inclined to lose their minds during periods of uncertainty. If only we had a modern-day James Baker, the driving force behind the 1985 Plaza Accord. With the mandate of Reagan, who set the direction without managing the details, Baker deployed US power through velvety diplomacy in pursuit of US interests, knowing that US allies and partners would always prefer to deal with America, even when it was having a bad day. Has their attitude changed from Baker’s time? We are likely to find out over the next 90 days.
China will have to brought into any accord at some point. The underlying problems that have led us to this point are largely a consequence of Beijing’s strategy of concentrating industrial power in China. This has stunted development of a services-based economy in China, distorted global trade and supply chains, hollowed out Western industrial bases, delayed the industrialisation of the Global South and created national security and economic resilience risks for the US, its allies, partners and others.
Through a concerted strategy, as sketched out here, global trade could be rebalanced such that China would have to divest itself of overcapacity, including to the benefit of less developed countries.
By reallocating the costs of Pax Americana, the US would gain more financial and strategic resources to deal with the risk of China’s growing power and its strategic ambitions. It would be sustainably solvent, sitting at the centre of a reformed global system of prosperity and security. That would be worth the volatility of recent days. Whether we have arrived here through great cunning or as a consequence of instinct and improvisation does not matter much. What matters is the art of getting the deal done.
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Taiwan’s President Lai Ching-te must have been on his toes. The island’s trade and defence policy has snapped into a new direction since US President Donald Trump took office in January.
The government was almost certainly behind a deft move by the country’s giant semiconductor company, TSMC, to set up three production facilities in the United States. Also, Lai’s administration has stepped up plans to import the kinds of US products that would catch Trump’s eye. It’s pushing for a hefty rise in defence spending, too.
Anyone would think that Taiwan had done its homework and was ready for the new US administration. Or maybe it’s just faster on its feet than most. Senior Taiwanese officials have been carefully studying Trump’s agenda and looking for items they can enthusiastically support and that advance Taiwan’s interests.
Take TSMC’s announcement in early March that it was sinking US$100 billion into the US to build the chip plants, along with a research and development centre, bringing its total pledged investments in the US to US$165 billion. This came after Trump accused Taiwan of stealing the US’s chip business on the campaign trail and threatened a 100 percent tariff on chips.
In Taiwan, there was an uproar. Many Taiwanese believe TSMC, which makes at least 80 percent of the world’s most advanced chips in Taiwan, is a ‘silicon shield’. They see it as crucial for Taiwan’s geopolitical protection as it gives foreign countries an incentive to protect the country. There were worries that if Lai went along with Trump’s push to reclaim the world’s chip industry for the US, the silicon shield would be weakened.
But Lai understood that, if he appeared to be obstructing Trump’s agenda, diplomatically isolated Taiwan might be discarded. Had Trump not won the US election, TSMC probably would not have announced such a large investment. But the gamble paid off. On the day of the announcement of the deal, Trump appeared happy.
‘I would say it came off as an extraordinary success,’ Chris Miller, author of Chip War and a world expert on the semiconductor industry said at a seminar in Taipei in late March.
‘TSMC managed to put itself in a position of a partnership with the new administration,’ Miller said. ‘All these are wins for TSMC and wins for the U.S.-Taiwan relationship as well.’
‘I don’t think the TSMC announcement solves every issue. But it does put the relationship on a much stronger footing.’
Taiwan’s chip industry is unlikely to see significant changes in the next five years. Building plants in America is a sluggish process. Many experts also reckon TSMC is born of a unique industrial and cultural ecosystem in Taiwan that will be extremely hard to uproot and duplicate in the US.
Lai’s moves don’t stop with chips. He also has plans to buy natural gas from Alaska, announced as early as February. Taiwan historically has one of the strongest environmental movements in Asia and most Taiwanese are highly conscientious about conservation. But Lai and his officials noted Trump’s plans to expand the oil and gas industry.
They also noted Trump believes trade deficits are a threat to the US economy. Lai and his team pragmatically hope the procurements will help reduce the US’s deficit with Taiwan, which in 2024 was its sixth largest, and that this will also help with Taiwan’s energy security.
Currently Australia, Qatar and the US are the three largest suppliers of natural gas to Taiwan, with the US supplying 10 percent. When the Alaskan deal eventuates, it’s highly likely that Taiwan will prefer to reduce imports from Qatar, as it will be unwilling to alienate Australia for strategic reasons.
Then, Lai also moved quickly with plans to buy US agricultural products. Taiwan’s foreign minister announced in late March that Taiwan would send a procurement mission to the US this September. Lai has also promised to push the defence budget to more than 3 percent of GDP this year, up from the planned 2.45 percent.
Of course, Lai’s battle is far from over. The Trump administration is highly unlikely to be content with that level of defence spending and will push Taiwan to spend 5 percent or even 8 percent of its GDP on defending itself. And on 2 April, Trump announced a new wave of tariffs in the US’s most aggressive trade action in nearly a century. Among them was a 32 percent tariff on goods from Taiwan, exempting semiconductors. Outraged Taiwanese officials are protesting. Miller says he expects much more friction and a lot of ‘hard-elbowed’ diplomacy between Taiwan and the US for the next four years.
But Taiwan notably proposes no retaliatory tariffs. Lai is obviously still focused on good relations with Trump.
These early moves say a lot about Lai’s leadership style. He and his independence-minded Democratic Progressive Party have revealed a strong pragmatic streak. Lai has also shown he is able to put himself in the minds of Trump and his supporters and anticipate what pleases them.
https://aspi.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2025/04/10084107/Anticipating-what-Trump-wants-Taiwan-puts-money-in-America-first.jpg6831024markohttps://aspi.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2025/04/10130806/ASPI-Logo.pngmarko2025-04-10 08:41:262025-04-10 08:41:30Anticipating what Trump wants, Taiwan puts money in America first
How will the US assault on trade affect geopolitical relations within Asia? Will nations turn to China and seek protection by trading with each other?
The happy snaps a week ago of the trade ministers of China, Japan and South Korea shaking each other’s hands over progress on a trilateral trade pact suggested that possibility.
The three, from nations with deep historic antipathy towards each other, said an agreement would create ‘a predicable trade and investment environment’, and they promised to speed negotiations.
There had been no discernible progress on the proposed trilateral deal since negotiations were launched in 2012. That this was the first ministerial meeting since 2019 points to the challenge ahead.
Asian nations have been active—some would say hyper-active—in pursuit of trade deals. The Asian Development Bank counts 77 preferential trade agreements among the nations of the Asia-Pacific region (including Australia) and a further 109 agreements signed with nations outside the region. Its research shows the agreements provide little help to export volumes.
About 56 percent of Asia-Pacific trade is within the region, which is only slightly less than the internal trade of the European Union. However, the intra-regional trade share has shown no growth since 2005 and has in fact slipped since 2020, despite the spread of trade deals.
Asian nations hit by US tariffs will certainly seek sales elsewhere. However, the first link in the supply chains that bind together enterprises across the region remains China’s subsidised manufacturers while the prize market remains the ravenous appetite of the US consumer.
There have been big changes in Asian trade patterns over the past decade. China has become more self-sufficient, particularly since 2018, when Donald Trump launched his first round of tariffs.
China’s President Xi Jinping responded in 2020 with his Dual Circulation Strategy, under which China would remain open to world markets but would seek economic self-reliance and import substitution in strategic sectors.
An analysis by Hinrich Foundation shows the success of this import-substitution drive. For every $100 of GDP growth over the past decade, China has had to import only $12.50 of goods and services, whereas in the decade to 2013, it needed $21.50 of imports for every $100 of GDP growth.
China’s imports are increasingly concentrated among a handful of countries, led by Russia, Vietnam, Brazil and Australia. Hinrich estimates that countries representing less than 10 percent of the global economy have supplied two thirds of China’s import growth over the last decade.
China sought, in particular, to become less dependent on the United States as both a market and as a supplier. The US share of China’s exports fell from 20 percent in 2018 to 12 percent last year, while the US share of China’s imports dropped from 8 percent to 6 percent.
While China’s direct trade with the US has fallen, its trade with Southeast Asia has increased. China’s share of Southeast Asian exports rose from 12 percent to 16 percent over the past decade, while its share of the region’s imports went from 16 percent to 24 percent.
Rather than exporting finished goods to the US, China is selling components to such countries as Vietnam, Cambodia and Malaysia, which then sell finished goods to the US.
The US has provided most of the growth for Southeast Asian exporters, with its share of their sales rising from 9 percent to 15 percent over the past decade.
There has been no growth in the US share of Southeast Asian imports, which has held steady at around 6 percent for most of the past 20 years.
The US has also become much more self-sufficient over the past decade as a result of the surge in its oil and gas production following the development of fracking technology.
However, US imports of manufactured goods have continued to rise. Estimates by Council on Foreign Relations fellow Brad Setser show the US trade deficit in manufactured goods has almost doubled since the 2008 global financial crisis to about 1.3 percent of global GDP.
In the same time, China’s manufacturing surplus has almost tripled to 1.7 percent of global GDP. Other Asian countries have become intermediaries in the flow of manufactured goods from China to the US but have not replaced it.
There is no other market like the US consumer. US household spending in 2023 reached $19 trillion, double the level of the European Union and almost three times that of China.
The huge imposts on US imports from China, Vietnam, Cambodia, Thailand and Indonesia will increase the cost and slow the flow of goods to US consumers, but there are no obvious markets to replace them.
Whether the tariffs act as the catalyst for the reindustrialisation of the US—an objective of both Republicans and Democrats—remains to be seen.
https://aspi.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2025/04/07111125/In-trade-nothing-can-replace-the-US-consumer.-Still-Asian-countries-look-to-each-other.jpg6821024markohttps://aspi.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2025/04/10130806/ASPI-Logo.pngmarko2025-04-07 11:12:392025-04-07 11:12:44In trade, nothing can replace the US consumer. Still, Asian countries look to each other
When the US Navy’s Great White Fleet sailed into Sydney Harbour in 1908, it was an unmistakeable signal of imperial might, a flexing of America’s newfound naval muscle. More than a century later, the Chinese navy has been executing its own form of gunboat diplomacy by circumnavigating Australia—but without a welcome. The similarities and differences between these episodes tell us a lot about the new age of empires in which Australia now finds itself.
Both were shows of force. The former expressed President Teddy Roosevelt’s foreign policy of speaking softly while carrying a big stick—the original version of peace through strength—while the latter aimed at disturbing the peace.
The Great White Fleet’s visit was a spectacle. Australians cheered as 16 gleaming battleships, painted white and with shiny trim, paraded into Sydney Harbour. A flight of steps, the Fleet Steps, was specially built in the Royal Botanic gardens to receive the American visitors.
The visit was a calculated diplomatic manoeuvre by Prime Minister Alfred Deakin in making the invitation and by US President Teddy Roosevelt in accepting it. Both Australia, a young federation deeply tied to the British Empire, and the United States, a rising but not yet super power, saw value in signalling US Pacific presence to Japan.
For Roosevelt, the fleet also presented his big-stick foreign policy to European nations: the US had arrived as a global power. Just as important, he saw the fleet’s world tour as helpful in explaining to the American people why they needed to spend money on defence, including ships, as their country opened up to global opportunities but also threats. Deterrence, preparation, social licence all strengthened national resilience.
Deakin saw the chance and didn’t just invite the fleet to Australia but engineered the visit. He wanted the visit to kindle the notion in Australia that it should have its own fleet. Irregular Royal Navy deployments to the Far East could not guarantee Australian security.
Also like Roosevelt, Deakin knew that a passive approach to defence policy would not keep the nation safe in an era of rising military powers, with a strategic shift to proactive engagement needed urgently, not only once a crisis had begun. He was especially concerned about Japan’s growing sea power but, again like Roosevelt, he also had an eye on Russian and (later) German sea power.
While Deakin wanted a national navy and was an empire man, he thought it prudent to start building a partnership with the US. Not yet replacing Britain as global leader, it had burst on to the strategic scene only a decade earlier. It had annexed the Philippines in 1898 in the Spanish-American War and, in the same year, the Hawaiian Islands. These made the US a Pacific power.
Both men in the early 1900s understood the connection between European and Pacific security and both set out to protect their national interests by working together against European and Asian powers seeking to create instability and spheres of influence.
As Russell Parkins well describes in Great White Fleet to Coral Sea, Deakin noted in one of his written invitations to the US that ‘No other Federation in the world possesses so many features of likeness to that of the United States as does the Commonwealth of Australia’. Roosevelt later acknowledged he had not originally planned for the fleet to visit Australia but that Deakin’s invitation had confirmed his ‘hearty admiration for, and fellow feeling with, Australia, and I believe that America should be ready to stand back of Australia in any serious emergency’.
This was naval might wielded with soft edges: immense firepower floating on the harbour, and friendly chats over tea ashore.
Today the strategic environment again involves European and Asian powers—Russia and China—seeking spheres of influence, only the dynamics of the naval visit couldn’t be more different. No time for afternoon tea, just the reality that Australia faces a security threat from Beijing that demands national preparedness and international friendships and alliances.
When Australia and China encounter each other at sea, the interactions are adversarial, accompanied by dangerous Chinese manoeuvres, high-powered lasers shining into cockpits, chaff dropped into Australian aircraft engines and sonar injuring Australian navy divers. These are not friendly port calls but dangerous military activities and displays of coercive statecraft.
The Great White Fleet sought goodwill and alliances. China’s naval behaviour is an assertion of dominance. If the Australian public were in any doubt about how Beijing intended to interact with the region, China’s behaviour in this most recent episode should be instructive. The lack of warning given to Australia was a warning itself of what is to come. Beijing wants us to heed it and submit.
We must not submit. We must learn from the incident and change Beijing’s behaviour.
When a Chinese naval flotilla last made a port call to Sydney, in 2019, it was met with some public unease, if not alarm. Australia had, after all, approved the visit. But through a combination of Canberra’s ignorance of history and Beijing’s aim of rewriting it, the visit was approved without recognising that it coincided with the 30th anniversary of the Tiananmen Square massacre.
Not long after the negotiated port visit, China suspended ministerial-level engagement as part of coercion to bring Australia into line. Despite some warming in relations in recent years, Beijing chose not to give Australia advance notice of live-fire exercises. The same Beijing that only a few years ago gave notice of a visit now has the confidence to fire at will.
Australia must stop being surprised by every new Chinese military or hybrid warfare development. Beijing’s confidence is growing in all domains, including cyberspace. With intrusions known as Volt Typhoon, China’s intelligence agencies were outed in 2023 as having pre-positioned malware for disrupting and destroying our critical infrastructure. This should also be seen as a rehearsal for later cyber moves.
And now, for the first time in the modern era, we have seen a potential adversary rehearse its wartime kinetic strategy against Australia. Yes, the Japanese did surveillance and intelligence gathering before World War II, but this circumnavigation with live-fire exercises takes us well beyond intelligence collection. Beijing has been undertaking ‘intelligence preparation of the battlespace’ for some time with ships it frequently sends to Australian waters to observe our exercises or to conduct oceanographic studies (which improve submarine operations).
Just as the Great White Fleet helped to inspire the development of an Australian navy, the Chinese flotilla should warn us that our own fleet needs to be larger and ready to assure our security. The rhyme of history is that distant fleets operating in Australian waters matter and should spur our own thinking (and act as catalysts for action) regarding Australian sovereign capabilities.
After all, these episodes underscore an enduring truth about Australia’s geopolitical reality: we are a regional power situated between global hegemons and their very large navies. One could even say that we are girt by sea power. But this is not new territory; it is the blessing and burden of geography and history.
Whether it was navigating the transitions from British to American primacy in the Pacific or more recently adjusting to China’s challenge to the US-led order, Australia has always had to manage its strategic relationships with agility and nuance.
The key difference, of course, is that Australia welcomed the Great White Fleet in 1908 with open arms. Today, Australia finds itself on the receiving end of an unwelcome presence by ships that appear uninterested in friendly port visits. This demands a response that is not reckless but is firm enough to avoid being feckless.
Although the position is difficult, the Australian government should not think it must walk a tightrope in dealing with China. The strength of response to Beijing’s aggression should depend on the minimum needed to deter more aggression, not by a perceived maximum that will leave trade and diplomatic relations unharmed. European countries have made such mistakes in handling Russia—declining to hold it to account in the hope that Putin would keep selling gas to them and delay military action.
There’s no use in pretending or hoping there is nothing to see here except one-off instances of unpleasant behaviour. China’s aggression follows its concept of dealing with the rest of the world, and it won’t stop. Quiet diplomacy won’t deter Beijing from more dangerous behaviour but will embolden it to repeat its actions. Each instance will show Australia is incapable of doing anything about it until Beijing—mistakenly or intentionally—goes so far as to make conflict inevitable. Australia’s time to stand up cannot wait until a live fire drill becomes just live fire.
As Teddy Roosevelt put it, big-stick foreign policy involves ‘the exercise of intelligent forethought and of decisive action sufficiently far in advance of any likely crisis’. Navigating the best response to aggression therefore requires clarity about what is at stake.
What Australia does in the South China Sea—where it operates in accordance with international law alongside allies—is not equivalent to China’s recent foray into the Tasman Sea. Beijing’s actions represent yet another demonstration of reckless behaviour, following its dangerous harassment of Australian forces. By making various attacks—with lasers, chaff or sonar—China shows an undeniable pattern of attempted intimidation. When Australia sails into international waters, we do so to maintain the rules-based order and promote regional stability, yet when China does the same it is often to undermine the rules and destabilise the region.
The intimidation is in fact regional; it’s not just about Australia. Just as the Great White Fleet demonstrated America’s arrival as a Pacific power, China’s naval activities signal Beijing’s intent to reshape the region’s strategic balance. Australia, as it has done before, must adapt. It must spend more on its own defence capabilities, deepen relationships with like-minded democracies and maintain the diplomatic dexterity that has long supported its survival in a world of rising and falling empires.
Most importantly, the government must bring the Australian public along for the voyage. The threat from China should surprise Australians no more than the threat from Putin should surprise Europeans.
Knowledge is power and the Australian public can be empowered, and therefore prepared, not to be shell-shocked by China’s aggression. It should instead be reassured that the Australian government has the situation in hand and that defence investment is a downpayment on our future security. It should be reassured that the spending makes conflict less likely.
Australia is not a major power, but we have the world’s 13th largest economy and are not without influence. We should stop seeing ourselves as a middling middle power. We definitely shouldn’t act as a small power. We should be confident as a regional power. Our voice, actions and choices matter at home and abroad. It’s why Washington wants us as an active partner and Beijing wants us to be a silent one. Australia’s global advocacy for a rules-based system, and its public calling out of Beijing’s wrongdoing have been highly valued in Europe, Asia and North America.
Smaller regional countries rely on us to stand up to Beijing where they feel unable, while Europe increasingly knows the fight against Russia is also a fight against Russia’s ‘no-limits’ partner, China. And an Australia that stands up for itself and our friends will again demonstrate the value of partnerships to our ally the US.
Roosevelt’s Great White Fleet epitomised show of force as a means to deter conflict as well as preparation should deterrence fail. (Its cruise was also an exercise in long-range deployment.) The time for deterrence and preparation is with us once again. A Chinese foreign ministry spokesperson said this month that China was ready for war, ‘be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.’
We need to show, along with our ally the US and other partners, that war is not what we want but is something we are prepared for. If we cannot show that we have a capable stick, and the intention to use it if required, we will be defeated with or without a fight.
As Teddy Roosevelt said: ‘Peace is a great good; and doubly harmful, therefore, is the attitude of those who advocate it in terms that would make it synonymous with selfish and cowardly shrinking from warring against the existence of evil.’
The past tells us that navigating strategic competition requires a blend of strategic foresight and political agility. The echoes of 1908 should serve as both warning and guidepost for the uncertain waters ahead.
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AUKUS governments began 25 years ago trying to draw in a greater range of possible defence suppliers beyond the traditional big contractors. It is an important objective, and some progress has been made, but governments still lack key processes for getting technologies from disparate new suppliers into service.
This is leaving security gaps. Even if they are building economical dual-use products that should be easily adapted for national security purposes, many companies find it hard to work with the government.
For example, an intelligence service may be better able to detect a hostile state threat if it could use an investigative tool already sold to banks for monitoring financial transactions. But if working for the government takes too long, the vendor will simply stick with its financial customers.
The issues are complex, but the ball is in governments’ court. If governments want to benefit from vendor diversification in defence and security, they’ll have to be more open on the problems they are trying to solve, quicker to contract with startups and more willing to learn through rapid iteration.
Governments can seek to solve their hardest security-technology challenges in a few ways. They have traditionally tried to build the solution in house or have paid a large defence prime to do it. This century they’ve slowly realised that their hard problems are not always unique and that solutions already exist in the marketplace—just not within their traditional supplier base.
In 1999, the CIA set up In-Q-Tel and in 2004 US Grand Challenges were established; these were competitions open to many entrants, often newcomers. Britain has published technology challenges since 2008 and recently set up a Co-Creation Centre. Australia joined In-Q-Tel International in 2018 and has similar programs to engage the startup community.
That’s a lot of effort in the right direction. Yet governments still find it hard to engage with non-traditional suppliers. One reason stands out: officials trying to pull-through new capabilities have to fight against the system to take a risk on a novel supplier.
Venture capitalists, on the other hand, are prepared to take risks early, backing a company with millions of dollars based on potential sales. Many Silicon Valley investors actually discourage startups from trying to sell to governments, even if the products are directly relevant to national security or defence. Government sales are too sporadic and slow for them.
Unfortunately, the best choice for many companies is often to stick with making products for commercial customers and just being ready for government customers to turn up if they want to. The attitude is: ‘build it and (maybe) they will come.’
Governments would ideally be able to exploit a product for defence and security operational advantage before it reaches the open market. They now regretfully acknowledge that game-changing products are being sold before they can be exploited in secret.
The best approach to solving this is countercultural to organisations who want to keep everything under wraps secret and built in-house. The answer is to be more open, less secretive and to accept more risk.
Governments openly talk about what technologies they care about in the longer term (such as quantum or synthetic biology) and how they are improving what’s called ‘pull-through’—the gap between technology demonstration and deployment. The mechanisms include grand challenges, grants, co-investments and quick contracting.
But governments are not good at explaining why some technologies are important and where they will be deployed operationally, often because of a preference for secrecy. If a government takes years to build a technology platform in secret, the result is likely to be secure but will be quickly overtaken by commercial technology.
The conflict in Ukraine means military technology is being conceived, developed, tested and deployed at eye-watering speeds in front of social media and the public. Governments are only now being more open about the operational context in which the technology will be deployed, share specific requirements and constraints openly and upfront (that is, explain the why); meaning the right solution can be developed more quickly.
Britain is leading the way. For instance, the Ministry of Defence has publicly tendered for one way attack drones and autonomous maritime weapons for Ukraine.
Sharing of why and where technology will be deployed results in quicker operationalisation. New and better versions can be created with user feedback; the first version can be discarded and replaced with a new one, which itself might not last long as iterations appear. In this paradigm, the rapidity of pull-through becomes a source of operational security, because the adversary is forever trying to catch up on what you’re doing.
With more global competition and the West’s diminishing technological superiority demands government embrace proper processes to harness dual-use commercial technology—of the speed and scale that nimble companies normally focused on private customers can deliver. We must make it work.
https://aspi.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2025/04/04132546/In-national-security-governments-still-struggle-to-work-with-startups.jpg14132048markohttps://aspi.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2025/04/10130806/ASPI-Logo.pngmarko2025-04-03 13:25:132025-04-04 13:30:06In national security, governments still struggle to work with startups
Beyond trade and tariff turmoil, Donald Trump pushes at the three core elements of Australia’s international policy: the US alliance, the region and multilateralism.
What Kevin Rudd called the ‘three fundamental pillars’ are the heart of Australia’s foreign policy consensus.
Even Robert Menzies had versions of those pillars in his policy Parthenon. The consensus dates from the dark days of World War II, when the United States stepped up to perform the vital role Menzies defined as the ‘great and powerful friend’.
The eight-decade lineage means Australia is not about to give up on alliance, region and multilateralism as expressions of our interests, history and geography. But Trump alters Australia’s understanding of what the pillars can support.
The scope of region has grown from the South Pacific and East Asia to become the Asia-Pacific, and now the Indo-Pacific. The sorry state of the United Nations means multilateralism offers a rules-based order where rules rupture and order buckles. The US ‘is turning against the liberal international order that it once forged’, Chatham House argues, drawing on its research for the US National Intelligence Council. The alliance has deep roots in the dire days of 1942 when Washington made General Douglas MacArthur commander in the Southwest Pacific, instructing him to repel the Asian invader and hold ‘the key military bases of Australia as bases for future offensive action’.
The treaty expression of the alliance, ANZUS, now in its eighth decade, rests on a promise to consult about military threats. Thus, while NATO is shocked to sense Trump-sized holes in the promise of automatic military response to attacks, Australia has always understood the contingent nature of ‘consult’, all that ANZUS actually compels the signatories to do in case of security threats. The embrace of the alliance totem by Menzies raises three implicit questions about any US administration: How great? How powerful? How friendly?
Trump has changed the politics of the alliance consensus in Australia’s election. Peter Dutton proclaims: ‘If I need to have a fight with Donald Trump or any other world leader to advance our nation’s interest, I’d do it in a heartbeat.’
Fight the US president in a heartbeat? Roll over, Bob Menzies. A Liberal leader breaks an unwritten rule of Australian politics that states that any party doubting the alliance is punished by voters.
Former Liberal prime minister Malcolm Turnbull offered a meditation on how Australia must recalibrate ‘to discuss how we can defend ourselves without America’, arguing that ‘Trump makes it very clear he is both a less reliable and a more demanding ally.’
Canberra wise owls such as Dennis Richardson recognise this less-reliable-more-demanding judgement of the US, while still embracing the alliance. Attempting that balance, Dutton offers to fight Trump while maintaining that the AUKUS submarine isn’t at risk, because both sides of US politics see its benefits.
Even the crown jewels of the alliance lose shine. The Economist surveyed Trump’s damage to ‘the world’s most powerful intelligence pact’, the Five Eyes signal intelligence partnership of the US, Britain, Australia, Canada and New Zealand, identifying three risks:
—The US will disrupt the arrangement, ‘perhaps acting on its threats to boot out Canada from the Five Eyes’;
—The allies will share less, fearing that ‘the Trump administration will be lax in protecting its secrets’; and
—The most likely scenario is that Trump’s war on the federal bureaucracy and politicisation of the intelligence community ‘will cause turmoil and paralysis among American spies that spill over onto allies’.
In the new reciprocal tariff schedule just released by Trump, Asia is the top target. Countries getting tariffs in the 40 percent range include Vietnam, Cambodia, Sri Lanka, Laos and Myanmar; those in the 30 percent range include China, Taiwan, Indonesia, Thailand and Bangladesh; those in the 20 percent range include Japan, South Korea, India, Malaysia and Pakistan.
As Trump imposes tariffs to shut out the world, Australia could show the Indo-Pacific how open it is by killing the last of its tariffs, completing our trek from being a highly protected economy to one of the most open in the world. Australia’s remaining tariffs range from 3 to 5 percent. We could quickly go to zero. Bryan Clark of the Australian Centre for International Trade and Investment says: ‘Abolishing tariffs would lower prices for consumers, reduce business costs and simplify supply chains, boosting resilience in a disrupted global market.’
Zero tariffs would be an emphatic response to an autarkic US and a practical invitation to the rest of the Indo-Pacific. Australia would answer bad policy with good policy—open Australia versus closed US.
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We need more than two Australians who are well-known in Washington.
We do have two who are remarkably well-known, but they alone aren’t enough in a political scene that’s increasingly influenced by personal connections and therefore reputations.
The two are ambassador Kevin Rudd and the director-general of the Office of National Intelligence, Andrew Shearer. In dozens of meetings with officials, politicians, industry and think tanks in Washington on a recent trip, I repeatedly heard people mention Rudd and Shearer – but rarely other Australians.
What happens when one or both of those people are no longer in office? This country should systematically promote other people with strong reputations and work on developing more heavy hitters for the future.
Australia’s overriding national security issue is the risk that China dominates our region, establishes its authoritarian political system as the norm and uses coercion to extract what it wants from other countries at the expense of their liberty and prosperity.
While Australia must do what it can to look after its own security, we are much better placed with a strong US commitment to our region and to the alliance. It is therefore essential that our voice is heard in Washington.
Traditionally, a person’s access to US officials was determined mainly by his or her position, though reputation and contacts have always been important. But, even before the re-election of Donald Trump, reputation and contacts were pulling ahead of office as influential factors.
I saw in Washington in March and April that they were now dominant. My discussions took place in the usual departments and sensitive compartmented information facilities (known as SCIFs) but also in cafes, restaurants and bars. If you are a government official and work only 9 to 5 on Monday to Friday, on Monday morning you will be behind and scrambling to catch up.
Business these days is done everywhere all the time, and when it’s done away from the office, it’s more likely to be arranged at a personal level.
We are lucky to have Rudd and Shearer, who are well known by Republicans, Democrats and senior bureaucrats. They have both done excellent jobs in building their international networks over many decades, especially in Washington, the hub for international, security and defence debates. It shouldn’t be missed that both have spent time in think tanks and have diverse work experience across government and non-government.
Rudd is seen as a globally recognised, Mandarin-speaking expert on China. He also has great prestige as a past prime minister, which is a stronger factor in the United States, with its presidential system of government and respect for former leaders, than is generally appreciated in Australia.
Shearer is further elevated by being seen in Washington as the Australian official who is most nearly a national security adviser, a position that grabs attention in Washington.
It’s not his job that gives him this status, but his reputation for understanding global security issues. It isn’t hard to understand that we need to offer more than two people whom influential Americans are keen to meet, especially with Shearer based in Canberra.
Behind Rudd and Shearer, the bench is not deep. There are former and current intelligence chiefs, for example, who are listened to globally and have built strong relationships in the US intelligence community, including ASIO boss Mike Burgess.
Why do we have so few others of the status of Rudd and Shearer? The best explanation is the increasingly domestic focus of Canberra. Serving ministers and responding to a 24-hour media cycle is busy, urgent work. Talking points, possible parliamentary questions, Senate estimates, meeting records and minutes, reams of briefs absorb enormous resources.
I don’t exaggerate too much in saying that we’re incentivising the development of bureaucratic clones.
Yet we do have people in the public service with potential to become heavy hitters internationally. For the medium term, say, the 2030s and beyond, we should identify and begin cultivating them now, putting them in positions in which they can build reputations.
Foreign and security policy requires big picture strategic thinking, an understanding of defence, diplomacy, economics, politics and culture. People with this stature globally have worked through the major crises and twists of recent history.
They’ve built the confidence to be risk managers, not risk-averse. They’ve been mentored by the previous generation of giants. They’ve stood at the shoulders of influential leaders, ready to provide whispered sober advice at moments when an ability to see the forest rather than just the trees was most crucial.
They painstakingly earn their reputations, which then precede them through the doors into the most powerful rooms on earth.
We must identify those Australians who are already on their way to developing strong reputations – perhaps people in government but particularly in academia, business and think tanks.
ASPI is only one of several suitable hosts for the task, but we are also the only one with an office in Washington. Unfortunately, support for our DC office was cut in a government review of national security think tanks.
It’s poor timing to have fewer Australian voices and less convening power in Washington, which is why we aim to keep the office open.
One move that is guaranteed to deliver short-term results is for the next government to create a position of national security adviser. American officials notice that we don’t have one. So do friends in Europe and Asia.
All of our Quad partners, for example, have the role and they meet regularly, with no Australian at the table. In general, a job title may have lost its lustre in gaining traction in Washington, but the job title of national security adviser hasn’t.
Moreover, its lustre will stay with its office holder after he or she has moved on to other things.
So it’s a national priority: create people who, in an increasingly personalised Washington, are attractions not because of their jobs, but because of the wisdom for which they’re recognised. That’s what, and who, we need more of.
https://aspi.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2025/04/28173455/r0_0_1920_1079_w1200_h678_fmax.webp6741200nathanhttps://aspi.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2025/04/10130806/ASPI-Logo.pngnathan2025-04-28 06:00:002025-05-12 15:03:46Rudd and Shearer aren’t enough. Washington needs to see more Australian heavy hitters