Few nations find themselves as directly impacted by the escalating US-China trad

Few nations find themselves as directly impacted by the escalating US-China trade conflict as Australia.

However, Prime Minister Anthony Albanese may discover a silver lining in this situation. Australia has long managed to balance its relationship between its largest trading partner, China, and its historical ally, the United States. Yet this delicate equilibrium has become increasingly challenging under the Trump administration. In response to rising regional tensions, Canberra has strengthened its ties with the US, particularly through the Aukus agreement, which involves America selling Australia a fleet of nuclear-powered submarines. Last month, Deputy Prime Minister Richard Marles arrived in the US with a $500 million down payment. Despite these military agreements, Australia's trade situation remains complicated. Trump denied Australia's request for an exemption from steel and aluminum tariffs, putting Albanese in a difficult position.
Concerns are also mounting regarding the possibility of additional tariffs on April 2. Simultaneously, Albanese's efforts to stabilize relations with Beijing are facing their toughest challenge yet. In February, three Chinese warships conducted unusual live-fire exercises off Australia's densely populated east coast before circumnavigating the continent.

These dual challenges could pose significant difficulties for Albanese, who is facing an election by May 17. However, his approval ratings are on the rise, and support for his Labor government is cautiously increasing. This shift in public sentiment is likely influenced by Trump's unpopularity in Australia. Opposition leader Peter Dutton has been compelled to reconsider his initial praise for Trump, whom he referred to as a "big thinker." Nevertheless, Dutton's policies bear a resemblance to Trump's, including government spending cuts and the abandonment of DEI initiatives. A parallel can be seen in Canada, where tensions with the US have revitalized the center-left government. As both Australia and Canada approach elections within weeks of each other, the US president might inadvertently bolster the fortunes of both parties. We can attribute this phenomenon to what might be called the Trump effect. — Ben Westcott