First TACO, now TWIT: Trump will inevitably tank the economy
This time, Donald Trump didn't chicken out. Instead, he launched what some describe as the boldest use of American military power since George W. Bush's shock-and-awe assault on Saddam Hussein in 2003.
Trump had a bit on his mind when he prematurely exited the G7 leaders summit in the Canadian Rockies late last week, standing up Anthony Albanese in the process.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
an hour ago
- AU Financial Review
Alarm sounded over navy ships riddled with defects
The navy's biggest ships are riddled with hundreds of defects and are failing to meet availability targets, as chiefs grapple with underfunded maintenance budgets and a lack of skilled engineers to keep the vessels at sea, according to a scathing audit report. As the Albanese government comes under intense scrutiny to lift defence spending, the auditor-general aired internal concerns that the navy's failure could shake American and British faith in Australia's ability to operate nuclear-powered submarines.
West Australian
2 hours ago
- West Australian
Anthony Albanese stares down White House defence spending demands as pressure mounts at home
Anthony Albanese is staring down an emboldened White House, as the Trump Administration ratchets up pressure for Australia to increase its defence spending and threaten other nations who defy such demands. The Prime Minister, who is also facing domestic demands he bolster the Budget, has indicated a preparedness to increase Australia's defence spending beyond current targets but says he won't do so because of US demands. NATO partners this week agreed to lift their defence spending to five per cent of GDP, of which 3.5 per cent will be designated for capability, at the behest of US President Donald Trump. The exception was Spain, who opted out of the pact, and was subsequently threatened by the President with higher tariffs. Buoyed by his win in the North Atlantic, Mr Trump is now set to turn his attention to the Indo-Pacific. 'If our allies in Europe and our NATO allies can do it, I think our allies and our friends in the Asia Pacific region can do it as well,' Mr Trump's press secretary Karoline Leavitt said overnight. The Trump Administration has made no secret of their desire for Australia to lift its defence spending to 3.5 per cent of GDP to counter a rising China, including direct appeals to Defence Minister Richard Marles by his American counterpart. Further requests are expected when the four Quad foreign ministers, including Penny Wong, meet in Washington next week. Mr Albanese has maintained Australia will set its own agenda, and refused to be drawn on whether he was concerned Australia could be similarly threatened if he continues to resist the President's demands that allies lift their defence budgets. 'I'm not going to comment on things between Spain and the United States,' Mr Albanese said. 'We will invest in the capability that Australia needs. What my job is to look after Australia's national interest, that includes our defence and security interests and that's precisely what we are doing.' To a further question, the PM appeared frustrated and retorted 'There's a big focus on Spain … here today'. 'We have increased our defence investment. We've increased it by $57 billion over the medium term and by more than $10b in the short term.' Australia will spend two per cent of its GDP on defence this year, or $56b. That is expected to rise to $71b by 2028-29 and reach 2.33 per cent of GDP by 2033-34. The Government has said rather than throw out an abject number, its defence spending would be guided by capability needs. 'So we don't start with the question of how much money and then start to invent capability within it. We start with the question, what's required to be able to keep Australians safe; what's required to be able to meet our defence needs; what's that capability, and then you look at the expense issue, but you don't just - there's no area of public policy in Australia where we start with the financial envelope and then say, 'Okay, spend what you want' within it,' Home Affairs Minister Tony Burke said on Friday morning. Defence experts have also cautioned that it might be one thing for NATO countries to pledge to spend 5 per cent on defence, but meeting those commitments will be another. The latest NATO estimates show nine members failed to meet the 2 per cent target - set in 2014 - in 2024. Nevertheless, former Australian ambassador to the US Joe Hockey said not taking Mr Trump's request to lift defence spending seriously could risk relegating Australia to a 'tier three' ally. Mr Hockey warned Australia needed to step up amid Beijing 'aggression', but also needed the US onside. 'This is Beijing's aggression that we need to stand up to. Chinese people are great people. It is Beijing,' he told Sky News on Friday. 'The fact is, we do need the United States. They are crucial to the Indo-Pacific. 'They've just shown the world their capability to deliver on their objectives, and importantly, they are a force for good, and have been throughout our history. 'Now we have an open display of incredible power to be able to deliver on the objectives of the Western world, and we should be embracing that, not not fearing it, not being worried or afraid to go to the Oval Office or anywhere else.' Mr Albanese and Mr Trump have not spoken since the President left the G7 summit early, subsequently cancelling the planned bilateral meeting to get back to Washington to deal with the Israel-Iran conflict. Mr Trump has since spoken to several other world leaders he had to cancel on — but not Mr Albanese. Ms Leavitt on Thursday acknowledged 'not all' of those meetings had been made up. Mr Albanese has said he and Mr Trump will reschedule a meeting. The PM is set to travel to the US again in September to address the UN general assembly, and could try and meet him on the sidelines. The Coalition are incredulous that the PM will reportedly meet the Chinese President again before he meets with Mr Trump. 'He seems better positioned to get a meeting with the President of China from the President of the United States, and that is not what we need from a country or with a country that has underpinned the security of our region and the world for 70 years,' shadow defence minister Angus Taylor said on Friday. The Coalition are also demanding a ramped up pathway to 3 per cent of GDP. 'The Prime Minister himself has made that point, the most dangerous times since the Second World War, and in that context, it's incredibly disappointing that today, the Prime Minister has said that they will not increase defence spending to a level that's appropriate and necessary in order to implement their own plan,' he said, referring to the defence strategic review. Asked outright if the US should be able to dictate how much Australia spends on defence, he said 'absolutely not'. 'We should dictate it on what is necessary for us to be in control of our own destiny and for us to make sure we are able to achieve peace through deterrence in our region.' 'This Government needs to take seriously the defence of this great nation.'
News.com.au
2 hours ago
- News.com.au
Aussie Super sector breathes sigh of relief after Trump administration axes ‘revenge' tax
Australia's Super sector has breathed a sigh of relief after the Trump administration walked back a proposed 'revenge' tax for foreign investors, which would have wiped billions of dollars. US Treasury Secretary Scott Bessent confirmed overnight he struck a deal with countries tightening taxes on multinationals 'that defends American interests'. Under the international taxation rules agreed by 140 governments, including the former Biden administration, multinational companies would pay a minimum 15 per cent tax regardless of where their global headquarters are. On his first day as president, Donald Trump withdrew the US from the agreement and threatened retaliatory duties on any country that imposed the minimum multinational tax. 'After months of productive dialogue with other countries on the (Organisation for Economic Co-operation and Development) Global Tax Deal, we will announce a joint understanding among G7 countries that defends American interests,' Mr Bessent posted on social media. 'OECD Pillar 2 taxes will not apply to U.S. companies, and we will work cooperatively to implement this agreement across the OECD-G20 Inclusive Framework in coming weeks and months.' He added that he 'asked the Senate and House to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill'. Had a deal not been reached, nearly half a trillion US dollars in Australian super investments could have been impacted. After months of productive dialogue with other countries on the OECD Global Tax Deal, we will announce a joint understanding among G7 countries that defends American interests. President Trump paved the way for this historic achievement. On January 20, the President issued two… — Treasury Secretary Scott Bessent (@SecScottBessent) June 26, 2025 The Association of Superannuation Funds of Australia (ASFA) said on Friday it was 'a really welcome step from the US Treasury Secretary'. 'There's still a way to go – the amendments need to be made by lawmakers,' chief policy officer James Koval said. 'There are a number of other amendments under consideration. 'This section of the legislation would have changed the risk return profile of investment in the US, which would have been a poor outcome for all involved. 'The superannuation sector has around USD$450 billion invested in the United States, the single largest market outside of Australia. 'This is money invested in US infrastructure, equities, bonds, and other areas.' Anthony Albanese earlier also welcomed the update, saying he raised Australia's concerns with Mr Bessent on the sidelines of the G7 Summit in Canada last week. 'This would adversely impacted on Australian investment if it had have been implemented, particularly on investment from superannuation companies,' the Prime Minister told reporters. 'And one of the things that we held earlier this year in Washington DC was a round table of Australian investment funds who are willing and keen to invest in the United States – just one way in which the Australia US economic relationship is an important one.'
