Well, America might be a friend and an ally, in fact arguably our closest. But that hasn't amounted to much when it comes to tariffs, it seems. About 19 minutes ago tariffs were imposed, 25 per cent tariffs on steel and aluminium imports from Australia. So how should we respond and what does it say about the relationship? The Prime Minister is Anthony Albanese. Prime Minister, welcome.
ANTHONY ALBANESE, PRIME MINISTER: Good afternoon. Good to be with you.
MOORE: Hardly the act of a friend.
PRIME MINISTER: Well, it certainly is a decision which we regard as being entirely unjustified. It is a very harsh decision, but it's been made against every single country - Australia hasn't been singled out here. But it will of course hurt people in the United States because a tariff imposes a cost on the people who are purchasing the products. Australian steel and aluminium is, I think, the world's best. We account for less than 0.2 per cent of the total value of our exports. So, neither is in the top ten of what Australia sells to the United States. But it's a valuable product and that is why we will continue to put forward a very strong case for an exemption.
MOORE: I guess, you say it's against all other countries as well, but not every country is in a defence pact like AUKUS with the US. Not all other countries host military and navy bases like Australia does. Aren't we, sort of, right to have an expectation of being in a slightly different category?
PRIME MINISTER: Well, I think if people who are your listeners would regard the relationship between Canada and the United States as being historically pretty close, it's fair to say. And what is going on between those countries at the moment is rather extraordinary to say the least. So we will continue to advocate our case. We think that Australia does play an important role. The relationship that we have is not just a defence one, it's an economic one. Historically, since the Truman presidency, the United States has enjoyed a trade surplus with Australia.
MOORE: Interestingly, until just the last monthly figures, I think, when for the very first time it fell into deficit because they're buying our gold. Is that right?
PRIME MINISTER: Indeed. But that is really a one off circumstance. There's been a huge spike in recent times in those monthly figures. But over a period of time that hasn't changed, over a long period. And so it's been an important relationship that we've had. And indeed, we have a free trade agreement with the United States.
MOORE: So, you bring up the Canadians. The Canadians are retaliating. They've put in place their own tariffs. Why not retaliate? Diplomacy is not working.
PRIME MINISTER: Because tariffs have an impact in the country in which they're imposed. They increase prices, they increase inflation, and we don't want to push up prices for Australian consumers. We'll continue to engage constructively with the United States. We'll make the case for Australian trade and the benefits that it delivers for Americans.
MOORE: Do you agree with Malcolm Turnbull who says Donald Trump is a bully and if you suck up to him, you'll just get more bullying?
PRIME MINISTER: Look, Malcolm Turnbull is a private citizen these days. He certainly doesn't speak on behalf of the Government. And what my Government will do is have diplomatic relations with countries. Be it our close friends in the United States or others as well. But we will speak for ourselves as the government.
MOORE: Prime Minister, do you feel totally comfortable that America has our back when it comes to issues around defence and around AUKUS? Can you separate, under Donald Trump, the defence relationship, which is so important to this country, and the trade relationship? Do you see them as entirely different things?
PRIME MINISTER: Well, the defence relationship is critical. Donald Trump has a view about tariffs that is not one that I share or that the government shares, and certainly not one that Australia has had going back to the Hawke Government. Ever since has been a bipartisan position that understands that tariffs cause a cost here in Australia and that free and fair trade benefits the global economy. And what we're seeing at the moment is indeed the impact of US policy is having on the share market, both in the United States, but globally as well.
MOORE: Does that worry you? Do you worry not just about the impact on the share market, but much bigger the impact globally on economies and Australia's economy?
PRIME MINISTER: I, of course, am concerned about the impact on the global economy because I think that trade is a good thing for the global economy and that when you have protectionist policies that impact on prices then that will flow through to the global economy. Now, the decision that's been made about these tariffs on steel and aluminium, for example, won't result instantly. You can't have more steel produced in the United States today, as opposed to yesterday before these tariffs were imposed, or in aluminium. All you will result in is an increase in cost for American consumers or buyers of those products. Now, that's why it is a counterproductive policy. The United States Government have a different position from us on that. But we believe that this will result in slower growth. That, of course, will have an impact on the global economy because the United States remains the world's largest economy.
MOORE: I can't tell you, I've got so many texts, Anthony Albanese, just saying for example, 'Could Australia increase the rent for the US bases?', 'Could we put tariffs on the monster utes that we import?', 'We have to sort of stand up to Donald Trump'. Do you feel that there is anything that can be done beyond diplomacy, or do we just have to rely on words?
PRIME MINISTER: Well, there are a range of things that we can do without hurting our consumers. One of the things that we can do is to buy Australian. You can buy, to put it simply, people can go out there when they're in their -
MOORE: So, boycott American products. Would that be your recommendation?
PRIME MINISTER: No, what I'm saying is that Australians can have an impact by buying Australian goods. You buy Bundy soft drinks rather than some of the American products. You can make those decisions and buy Australian. But we will continue to put forward our strong case for an exemption at every level.
MOORE: Do you think he'll change his mind? He's known for doing that on occasion.
PRIME MINISTER: Well, there's been two different decisions on Canadian tariffs in the last 24 hours. So, very clearly, this is a fluid situation. The Trump Administration has been in office for just six weeks and it's been an interesting time. And we will certainly continue to put forward Australia's case and at every opportunity, both through diplomatic channels, but also publicly as well.
MOORE: Prime Minister, I know we only have a minute or two left, but I did want to ask you about another issue. We heard just the day before yesterday that the caravan that was filled with explosives and found in Dural near Sydney in January was never going to be a mass casualty event. It was never terrorism. From the very beginning, police suspected it was just a con job, which is what it turned out to be. Do you regret labelling it as terrorism so early in the piece? You were asked very specifically whether you backed the assessment of the New South Wales Premier that it was terrorism and you said it did. It filled the definition.
PRIME MINISTER: No, be very clear that it did create fear in the community. But I back our intelligence and police agencies to do their job. Throughout this I, of course, was briefed -
MOORE: And when were you briefed it was likely a con job?
PRIME MINISTER: I was briefed very early on and -
MOORE: But did that briefing say it's likely a con job?
PRIME MINISTER: I was briefed very early on that it was likely a hoax. And I said throughout that when confronted in Question Time and in the media, in questions, I said the police have to be allowed to do their job, which is what the position I took - it's the right thing to do. Did it create fear in the Jewish community? Yes, it did. But we know that it was run by criminals for their own ends rather than any other motivation. And the police were onto this very early on and they conducted what were extensive investigations to hold people to account, and it was important that they do that.
MOORE: Prime Minister, though, is there an argument, though, that there could have been different messaging precisely for the reason you just say? That this did strike fear into the hearts of so many in the community, and particularly the Jewish community, whereas all the while there was a real expectation and belief that it was a hoax. So without undermining the investigation, could authorities not have tried to allay those fears? Because, you know, the potential for a mass casualty event was being talked about for weeks and weeks when, you know, you clearly understood it was a potential hoax, but the rest of us didn't.
PRIME MINISTER: Well, you're giving a critique of the media there -
MOORE: But I'm also giving a critique of the Federal Police, the New South Wales Police, the people involved in the investigation.
PRIME MINISTER: The police have to be allowed to undertake their investigations and to do so in a way that does not alert the perpetrators of this activity to be conscious that they were onto them. And police have to be allowed to do their job. I have confidence in the police, I have confidence in our intelligence agencies to protect us and keep us safe. And as Prime Minister, I will back them because of the important role that they play.
MOORE: I'm quite sure I can't let you go, Prime Minister, with just saying, how is the 10th of May looking?
PRIME MINISTER: Well, the 10th, the 17th, we'll wait and see. It could be, we'll hand down a Budget as I've said. I thought the questions about election dates would stop. They've been going for a year.
MOORE: Well, they could stop if you tell us when it is. That'll bring an immediate end to it.
PRIME MINISTER: That's not the system that we have. And Peter Dutton argued a year ago that we should go to an election in order to stop all of your listeners getting a tax cut. I said at that time we would continue to govern. I've said consistently that we need to serve out a full term, that three years is too short. That was signalled, that we scheduled the March 25 Budget, which means an election sometime in May. We scheduled that last year. It's not my fault if journalists don't accept that and aren't paying attention. But I've said it enough times and refer to my 350 answers to the same question.
MOORE: Well, I'll restrain myself from ever asking you again. Prime Minister, good to talk to you.
PRIME MINISTER: Thank you very much, Ali. Great to talk with you.
MOORE: Thank you.
