Michaelia Cash (WA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. President Trump has today indicated that he is considering increasing the base-level tariff on all countries that don't have tariff agreements with the US to between 15 and 20 per cent, which could double the 10 per cent tariff previously announced for Australia. Minister, can the Prime Minister confirm whether Australia will be subject to a 10 per cent, 15 per cent or 20 per cent tariff from the United States?

Sue Lines (President) Share this | Link to this | Hansard source

Minister Wong—

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

What a stupid question.

Sue Lines (President) Share this | Link to this | Hansard source

Sorry, Senator Wong, if you would just resume your seat. Senator Ruston?

Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | Link to this | Hansard source

I was wondering whether you might reflect on the fact that senators from the other side are referring to questions asked by the opposition as 'stupid' and whether that is parliamentary.

Sue Lines (President) Share this | Link to this | Hansard source

Order! Senator Sterle, just keep your thoughts to yourself. Minister Wong.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Well, we did see the comments of the President of the United States and we'll continue to engage. I would say the advice to date is the US position is still being determined. I would make the point, through you, President, that obviously a change to the baseline tariff wouldn't just affect Australia; it would affect all countries who are subject to the baseline tariff. As you know, we are subject to the baseline tariff, not higher tariffs as other countries are. We are confident of our competitive position, and you would have seen that this government has made a great effort to open up more markets, in terms of the China market and other markets in our region, but also the United Arab Emirates and other diversification. This is about trade which is good for the economy.

Michaelia Cash (WA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

This is about the United States.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Senator Cash, I'll take the interjection. The thing is that Australians do understand that the US administration is taking a different approach on this. Australians do understand the challenges that we face—

Sue Lines (President) Share this | Link to this | Hansard source

The interjections across the chamber are disorderly. Senator Watt and Senator Cash, the Minister is answering the question. Minister.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Perhaps I'll go back to this point. It is clear that President Trump envisages a different role for the US in the world, and that includes in relation to trade, and that change is much greater than the first time he was President of the United States. I think Australians do understand, President, the challenges that we face as a consequence of that. What I would say is we can be confident of our ability to navigate these changes together. It is disappointing that the coalition have no interest in working together. It's the same negativity from the sidelines about Australia's engagement with the Trump administration. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Cash, first supplementary?

Michaelia Cash (WA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

World leaders from across the globe have secured meetings with the President, including from the Netherlands and Poland and even the Scottish First Minister. Countries within our region such as Japan, Vietnam and the Philippines have all signed trade agreements with the United States. When will Australia secure a tariff agreement with the United States, or has the relationship deteriorated so badly that there is no agreement in sight?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I think that perhaps it would be useful for Senator Cash to look—

Michaelia Cash (WA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

Senator Ayres, stop baiting me.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

We can make choices about how we respond, I suppose. President, I think Senator Cash might do well to look at some of the agreements that she referenced because, actually, the position Australia is in is a relatively better position than some of the ones that she has referenced. I know those facts are uncomfortable, but this really goes back to the approach the shadow foreign minister and the coalition are taking. This is a very different American administration. We can make the choice to work together, or we can make the choice to aggressively yell from the sidelines, and that is what the opposition are choosing to do.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Cash, second supplementary?

Michaelia Cash (WA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

The White House has set a strict date of this Friday 1 August for when a deal must be done before tariffs are set to take place. Will Australia have reached a tariff agreement with the United States by this Friday, or has the Prime Minister's inability to get a face-to-face meeting with the president now damaged Australia's national interest?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

There are a few things. First, no-one has a lower reciprocal tariff than Australia—

Michaelia Cash (WA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

That's not the question.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Thank you for that, but no-one has a lower reciprocal tariff than Australia. You don't like that fact, because it doesn't suit your argument.

Michaelia Cash (WA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

So that's the excuse?

Sue Lines (President) Share this | Link to this | Hansard source

Senator Cash, the constant interjection is disorderly. The minister is answering the question. Minister Wong, please continue.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I'll start again. No-one has a lower reciprocal tariff than Australia, and that obviously has relevance—less politically, more economically—because the relative position of Australia is a strong position. That's the first point. The second point that I would make to you, President, is that obviously we don't agree with the approach that the Trump administration has taken on this. We think tariffs are an act of economic self-harm. We have said so publicly. We made that clear on, as it was described, liberation day and in our response to that. The Prime Minister made that clear. That remains our position. The final point I would say to Senator Cash is that this is a challenging time and it is time for some responsible behaviour from the coalition on this. (Time expired)