<?xml version="1.0" encoding="ISO-8859-1"?> <docID>339719</docID> <postdate>2025-03-06 11:29:53</postdate> <headline>Australia determines ‘interests’ against Trump threats</headline> <body><p><img class=" wp-image-339721" src="https://citynews.com.au/wp-content/uploads/2025/03/20210722001559041841-original-1-scaled.jpg" alt="" width="1123" height="748" /></p> <caption>The US runs a trade surplus with Australia, with Donald Trump citing deficits as a tariff trigger. (Mick Tsikas/AAP PHOTOS)</caption> <p class="wire-column__preview__author"><span class="kicker-line">By <b>Tess Ikonomou </b>and<b> Dominic Giannini</b> in Canberra</span></p> <p><strong>Anthony Albanese has backed in Australia's defence spending amid pressure from the Trump administration for a substantial hike.</strong></p> <p>Defence spending is about two per cent, and is set to rise to just above 2.3 per cent by the end of the decade with increased expenditure.</p> <p>Funding for defence is a key issue for the Trump administration, which is pushing its allies to pay for their share.</p> <p>US President Donald Trump's pick for defence policy under-secretary Elbridge Colby has called for Australia to increase defence spending to three per cent of gross domestic product, in line with the level advocated by NATO.</p> <p>Prime Minister Anthony Albanese said Australia determined its national interest.</p> <p>"My government is allocating significant additional resources for defence that is being rolled out, including missiles, including a range of assets that improve both our capability, but also importantly, our delivery," he told reporters in Canberra on Thursday.</p> <p>"My government is delivering increased defence assets and increased defence capability, and that's what we're rolling out."</p> <p>Asked about the US' decision to withhold intelligence from Ukraine, Mr Albanese said the nation determined its own foreign policy.</p> <p>"It is in Australia's national interest to support the brave struggle of the people of Ukraine, led so admirably by President Zelenskiy," he said.</p> <p>"Our position on Russia has not changed. The way that this war should stop tomorrow is for Russia to withdraw and to back off from its illegal and immoral invasion."</p> <p>Treasurer Jim Chalmers said the government had yet to be advised about reciprocal tariffs to be imposed by Washington.</p> <p>They would be placed on nations that tax US products or impose "unfair, discriminatory or extraterritorial taxes" on American businesses and consumers.</p> <p>The tariffs include value-added taxes, fuelling speculation Australia's Goods and Services Tax could put it in the firing line but Mr Chalmers says the federal government hasn't been advised about any extra tariffs.</p> <p>"We've been engaging every level, the prime minister to the president, a number of senior ministers have been engaging with our counterparts in the US, making the case for Australia, for Australian industry and Australian workers," he told ABC radio on Thursday.</p> <p>"But we take no outcome for granted that I suspect the decision on Australian exemptions has not been made and so we'll continue to make our case."</p> <p>Australia is set to be hit with a 25 per cent tariff on steel and aluminium as officials work to secure an exemption, which Mr Trump said he would consider weeks ago.</p> <p>Mr Albanese said the duties were not in the interests of the US or Australia.</p> <p>The US runs a trade surplus with Australia - with Mr Trump citing trade deficits as a reason for tariffs - and imports into Australia weren't taxed, Dr Chalmers said.</p> <p>Defence Minister Richard Marles said he pointed to Australia making "a historic increase in our defence spending" when he spoke with his US counterpart Pete Hegseth.</p> <p>The opposition has called for more to be spent, with finance spokeswoman Jane Hume flagging a potential rise to three per cent.</p> <p>"We expect we will meet our international obligations and if taking defence spending up to a much higher proportion of GDP is the expectation ... that's where we need to go," she told Melbourne radio station 3AW on Wednesday.</p> </body>