‘Wouldn't put a number on it': Marles open to raising defence spending after Hegseth meeting
US Defence Secretary Pete Hegseth has pushed his Australian counterpart, Richard Marles, to ramp up defence spending to counter China's increasing assertiveness in the Indo-Pacific, as the two men talked up the strength of the alliance under the Trump administration.
Marles would not divulge what spending figure the pair had discussed, but America's demand would be likely to mean billions of dollars in extra defence funding.
Marles confirmed Australia was open to further budget increases after meeting with Hegseth on the sidelines of the Shangri-La Dialogue in Singapore, Asia's top defence summit, as he prepared to deliver a speech on Saturday warning of the risk of an unchecked arms build-up by China and other major nuclear powers.
'I wouldn't put a number on it. The need to increase defence spending is something that he definitely raised,' Marles told ABC TV on Friday.
'We have done a lot already, but we are absolutely up for having this conversation, and we want to calibrate our defence spending to meet the strategic moment that we all face.'
Marles said Hegseth's request was consistent with the broader push by the Trump administration for its allies to spend more on defence in order to benefit from the US security guarantee.
Hegseth's defence expenditure drive builds on similar calls by Pentagon policy chief Elbridge Colby, who in March said Australia's military spending should rise to at least 3 per cent of gross domestic product, saying Canberra faced a 'powerful challenge in China'.
It comes after Prime Minister Anthony Albanese on Thursday criticised a report by the Australian Strategic Policy Institute, which found a lack of short-term defence funding had left the Australian Defence Force unprepared for conflict, and also called for an expenditure increase to 3 per cent of GDP.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Age
an hour ago
- The Age
Trump says he will double steel, aluminium tariffs to 50 per cent
'They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade. We will continue to engage and advocate strongly for the removal of the tariffs,' Farrell said. Australia exported $640 million worth of steel and $440 million of aluminium last year to the US. The cumulative $1 billion trade is a small amount compared to the nation's total exports of $660 billion in the past financial year. Opposition trade spokesman Kevin Hogan said the latest move was concerning for Australian jobs. 'The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers,' he said in a statement on Saturday. 'This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries.' The steel and aluminium tariffs were enacted under trade laws rather than emergency powers, and were not among those struck down by the decision of the Court of International Trade this week. Those tariffs – which include a 10 per cent levy on Australian goods – will remain in place after a federal appeals court agreed to temporarily preserve them while the government pursues an appeal. The matter is almost certain to be decided by the Supreme Court. In February, Trump told Prime Minister Anthony Albanese he would consider giving Australia an exemption to the tariffs on steel and aluminium. Australia received a carve out during the first Trump administration. But the US president decided against giving any exemptions this time. Earlier on Friday, Trump also registered his frustration with China – which he accused of reneging on a tariff truce negotiated earlier this month – raising the prospect of additional import taxes. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!,' Trump said in a post on his Truth Social platform. Steel prices in the US have climbed 16 per cent since Trump became president in mid-January, according to the government's Producer Price Index, and such a dramatic increase in steel tariffs could push prices even higher. In March 2025, steel cost $US984 ($1535) a metric tonne in the US, significantly more than the price in Europe ($1076) or China ($611), according to the US Commerce Department. The US produced about three times more steel than it imported last year, with Canada, Brazil, Mexico and South Korea being the largest sources of steel imports. Loading While Trump initially vowed to block the Japanese steelmaker's bid to buy US Steel, he reversed course and announced an agreement last week for what he described as 'partial ownership' by Nippon. It's unclear, though, if the deal his administration helped broker has been finalised or how ownership would be structured. Analysts have credited tariffs going back to Trump's first term with helping strengthen the domestic steel industry, something that Nippon Steel wanted to capitalise on in its offer to buy US Steel. The United Steelworkers union remained sceptical of Nippon's planned investment. Its president, David McCall, said in a statement that the union was most concerned 'with the impact that this merger of US Steel into a foreign competitor will have on national security, our members and the communities where we live and work'. Trump stressed the deal would maintain American control of the storied company, which is seen as both a political symbol and an important matter for the country's supply chain, industries such as car manufacturing and national security. Trump, who has been eager to strike deals and announce new investments in the US since retaking the White House, is also trying to satisfy voters, including blue-collar workers, who elected him as he called to protect American manufacturing. US Steel has not publicly communicated any details of a revamped deal to investors. Nippon Steel issued a statement approving of the proposed 'partnership' but also has not disclosed terms of the arrangement. No matter the terms, the issue has outsized importance for Trump, who last year repeatedly said he would block the deal and foreign ownership of US Steel, as did former president Joe Biden. Trump promised during the election campaign to make the revitalisation of American manufacturing a priority of his second term in office. The fate of US Steel, once the world's largest corporation, could become a political liability in the midterm elections for his Republican Party in the swing state of Pennsylvania and other battleground states dependent on industrial manufacturing. Trump has said he wouldn't approve the deal if US Steel did not remain under American control and keep its headquarters in Pittsburgh.
The Advertiser
2 hours ago
- The Advertiser
Softy, softly response to Trump's hard line on steel
Australia will not retaliate despite Donald Trump's "wrong" tariff hike decision on steel imports. Mr Trump plans to increase tariffs on foreign steel from 25 to 50 per cent to "further secure the steel industry in the United States". The move could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "This will simply push up the price for consumers in the United States and do nothing for the prosperity of both of our nations," he told reporters on Saturday. Mr Farrell said the government would work with the US but reiterate the view that tariffs were "the wrong course of action" and "don't do what President Trump claims they will do". "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." Opposition trade spokesman Kevin Hogan said Mr Trump's call was concerning for Australian jobs. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," he said. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." The industry's peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." It took Australia nine months of lobbying before it secured a tariff exemption during Mr Trump's first administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. The latest tariff hike comes after a US federal court blocked the president's Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration has launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency". Australia will not retaliate despite Donald Trump's "wrong" tariff hike decision on steel imports. Mr Trump plans to increase tariffs on foreign steel from 25 to 50 per cent to "further secure the steel industry in the United States". The move could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "This will simply push up the price for consumers in the United States and do nothing for the prosperity of both of our nations," he told reporters on Saturday. Mr Farrell said the government would work with the US but reiterate the view that tariffs were "the wrong course of action" and "don't do what President Trump claims they will do". "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." Opposition trade spokesman Kevin Hogan said Mr Trump's call was concerning for Australian jobs. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," he said. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." The industry's peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." It took Australia nine months of lobbying before it secured a tariff exemption during Mr Trump's first administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. The latest tariff hike comes after a US federal court blocked the president's Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration has launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency". Australia will not retaliate despite Donald Trump's "wrong" tariff hike decision on steel imports. Mr Trump plans to increase tariffs on foreign steel from 25 to 50 per cent to "further secure the steel industry in the United States". The move could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "This will simply push up the price for consumers in the United States and do nothing for the prosperity of both of our nations," he told reporters on Saturday. Mr Farrell said the government would work with the US but reiterate the view that tariffs were "the wrong course of action" and "don't do what President Trump claims they will do". "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." Opposition trade spokesman Kevin Hogan said Mr Trump's call was concerning for Australian jobs. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," he said. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." The industry's peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." It took Australia nine months of lobbying before it secured a tariff exemption during Mr Trump's first administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. The latest tariff hike comes after a US federal court blocked the president's Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration has launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency". Australia will not retaliate despite Donald Trump's "wrong" tariff hike decision on steel imports. Mr Trump plans to increase tariffs on foreign steel from 25 to 50 per cent to "further secure the steel industry in the United States". The move could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "This will simply push up the price for consumers in the United States and do nothing for the prosperity of both of our nations," he told reporters on Saturday. Mr Farrell said the government would work with the US but reiterate the view that tariffs were "the wrong course of action" and "don't do what President Trump claims they will do". "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." Opposition trade spokesman Kevin Hogan said Mr Trump's call was concerning for Australian jobs. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," he said. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." The industry's peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." It took Australia nine months of lobbying before it secured a tariff exemption during Mr Trump's first administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. The latest tariff hike comes after a US federal court blocked the president's Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration has launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency".
The Advertiser
5 hours ago
- The Advertiser
EU threatens US with counter-tariffs in steel stand-off
The European Union has spoken out against US President Donald Trump's latest tariff announcement on steel imports and has threatened countermeasures. "We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent," said a spokesman for the European Commission in Brussels, which is responsible for EU trade policy. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." The EU is ready to take countermeasures, the statement continued. This could also happen earlier than July 14. As things currently stand, EU counter-tariffs already planned due to Trump's initial tariff decisions would automatically come into force on this date. The bloc had wanted the measures to come into force on April 14, but held back after Trump granted many countries and the EU a 90-day pause from certain tariffs. This window of opportunity had been intended to be used for negotiations. The EU has repeatedly emphasised that it will introduce decisive measures against US tariffs if the talks fail. Early last week, European Union Commission President Ursula von der Leyen expressed some optimism about sorting out the trade dispute, following a phone call with Trump. But now it appears all bets could be off. Speaking at a rally at a US steel plant near Pittsburgh on Friday, the US president said the additional import fees would strengthen the national steel industry. He added that tariffs were his absolute favourite word. Trump's administration has justified the existing steel tariffs as a measure to protect national security. He has already announced, threatened or implemented numerous other tariffs. In addition to a new penalty tariff of 10 per cent of the value of goods on almost all imports, he has announced specific, higher tariffs on imports, including from major trading partners such as China and the European Union. Unlike the EU, Australia will not retaliate against Trump's "wrong" tariff hike decision on steel imports. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." The European Union has spoken out against US President Donald Trump's latest tariff announcement on steel imports and has threatened countermeasures. "We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent," said a spokesman for the European Commission in Brussels, which is responsible for EU trade policy. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." The EU is ready to take countermeasures, the statement continued. This could also happen earlier than July 14. As things currently stand, EU counter-tariffs already planned due to Trump's initial tariff decisions would automatically come into force on this date. The bloc had wanted the measures to come into force on April 14, but held back after Trump granted many countries and the EU a 90-day pause from certain tariffs. This window of opportunity had been intended to be used for negotiations. The EU has repeatedly emphasised that it will introduce decisive measures against US tariffs if the talks fail. Early last week, European Union Commission President Ursula von der Leyen expressed some optimism about sorting out the trade dispute, following a phone call with Trump. But now it appears all bets could be off. Speaking at a rally at a US steel plant near Pittsburgh on Friday, the US president said the additional import fees would strengthen the national steel industry. He added that tariffs were his absolute favourite word. Trump's administration has justified the existing steel tariffs as a measure to protect national security. He has already announced, threatened or implemented numerous other tariffs. In addition to a new penalty tariff of 10 per cent of the value of goods on almost all imports, he has announced specific, higher tariffs on imports, including from major trading partners such as China and the European Union. Unlike the EU, Australia will not retaliate against Trump's "wrong" tariff hike decision on steel imports. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." The European Union has spoken out against US President Donald Trump's latest tariff announcement on steel imports and has threatened countermeasures. "We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent," said a spokesman for the European Commission in Brussels, which is responsible for EU trade policy. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." The EU is ready to take countermeasures, the statement continued. This could also happen earlier than July 14. As things currently stand, EU counter-tariffs already planned due to Trump's initial tariff decisions would automatically come into force on this date. The bloc had wanted the measures to come into force on April 14, but held back after Trump granted many countries and the EU a 90-day pause from certain tariffs. This window of opportunity had been intended to be used for negotiations. The EU has repeatedly emphasised that it will introduce decisive measures against US tariffs if the talks fail. Early last week, European Union Commission President Ursula von der Leyen expressed some optimism about sorting out the trade dispute, following a phone call with Trump. But now it appears all bets could be off. Speaking at a rally at a US steel plant near Pittsburgh on Friday, the US president said the additional import fees would strengthen the national steel industry. He added that tariffs were his absolute favourite word. Trump's administration has justified the existing steel tariffs as a measure to protect national security. He has already announced, threatened or implemented numerous other tariffs. In addition to a new penalty tariff of 10 per cent of the value of goods on almost all imports, he has announced specific, higher tariffs on imports, including from major trading partners such as China and the European Union. Unlike the EU, Australia will not retaliate against Trump's "wrong" tariff hike decision on steel imports. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." The European Union has spoken out against US President Donald Trump's latest tariff announcement on steel imports and has threatened countermeasures. "We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent," said a spokesman for the European Commission in Brussels, which is responsible for EU trade policy. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." The EU is ready to take countermeasures, the statement continued. This could also happen earlier than July 14. As things currently stand, EU counter-tariffs already planned due to Trump's initial tariff decisions would automatically come into force on this date. The bloc had wanted the measures to come into force on April 14, but held back after Trump granted many countries and the EU a 90-day pause from certain tariffs. This window of opportunity had been intended to be used for negotiations. The EU has repeatedly emphasised that it will introduce decisive measures against US tariffs if the talks fail. Early last week, European Union Commission President Ursula von der Leyen expressed some optimism about sorting out the trade dispute, following a phone call with Trump. But now it appears all bets could be off. Speaking at a rally at a US steel plant near Pittsburgh on Friday, the US president said the additional import fees would strengthen the national steel industry. He added that tariffs were his absolute favourite word. Trump's administration has justified the existing steel tariffs as a measure to protect national security. He has already announced, threatened or implemented numerous other tariffs. In addition to a new penalty tariff of 10 per cent of the value of goods on almost all imports, he has announced specific, higher tariffs on imports, including from major trading partners such as China and the European Union. Unlike the EU, Australia will not retaliate against Trump's "wrong" tariff hike decision on steel imports. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs."
