US President, Donald Trump and Australian Prime Minister, Anthony Albanese have signed a rare earths agreement which opens up Australia’s vast mineral resources.
This came as both leaders met at the White House. According to Trump, the deal has been in the works for “four or five months.”
Albanese added that the deal is an “eight and a half billion dollar pipeline” to supply critical rare earths to the US. This, amid an re-escalating trade war with China, who have tightened their rare earth exports and are facing a 100% tariff threat from the US.
Albanese stressed the close relationship between the two countries, and said the minerals deal was “just taking it to the next level.”
Albanese provided more details about the rare earths agreement, explaining that the US and Australia will contribute a billion dollars over the next six months to projects that will be available immediately.
There are three groups of projects: ones that are joint investments between the US and Australia; ones that are sole projects in Australia; and ones that are joint projects between the US, Australia and Japan.
Albanese added that this is in line with Australia’s long-term plans, and makes a connection between that plan and Trump’s America First agenda.
In their meeting with reporters, Trump disclosed that the US is working on building more submarines for Australia.
He said that the US is going to expedite submarine exports to Australia.
Albanese said that he has invited Trump to visit Australia, saying that they can coordinate the timing a golf tournament. Trump said he has visited Australia before and would like to go again.
However, Trump seemed unwavering in the 10% tariff on Australian exports.
“Australia pays among the lowest tariffs. The one thing is, you [Australia] buy a lot of airplanes, so that helps, because you buy a lot of the beautiful Boeings.”
Donald Trump
He is also asked about trade with China and Trump says the Asian power tries to take advantage but “I think we’re going to reach an agreement that’s good for both countries.”
Fears Of US Commitment To AUKUS Allayed
The future of the AUKUS defence pact appeared to be of significant concern ahead of today’s meeting.
However, Trump has allayed fears from down under that his administration would not commit to the trilateral agreement signed by his predecessor Joe Biden
Trump told reporters that AUKUS is moving “full steam ahead” and that there are only minor “clarifications” left to be ironed out
AUKUS stands for Australia, United Kingdom, United States. This was the trilateral defense agreement signed by the former leaders of the respective countries in 2021 – Scott Morrison, Boris Johnson and Joe Biden.
This treaty guarantees that nuclear-powered submarines to Australia by the US in the 2030s, and the construction of a new generation of nuclear-powered submarines by Australia and the UK in the 2040s.
This is now being reviewed by the Pentagon to see if it meets the administration’s “America First” policy.
Asked if the AUKUS agreement deters China, Trump said yes, but added, “I don’t think we’re going to need it” with China. He asserted that the US has the best military in the world, and nobody wants to mess with it. “We’re going to get along great with China,” he added.
Trump’s remarks came after Secretary of the Navy, John Phelan addressed the room of reporters. Phelan stated that the military partnership between the US and Australia is an important one, especially for America’s ability “to project power in the Indo-Pacific.”
He added that there is work underway to improve AUKUS – the security alliance between the US, the UK and Australia – and “clarify ambiguity” in the prior agreement. “We’re looking at the AUKUS relationship and making it better for all three,” he stated.
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