First, the tariffs from China hit Australian exporters now it’s the Trump tariffs on steel and aluminium – and as we have just learnt there will be no exemption.
How will these measures affect the USA, but also China, Australia and the rest of the global economy?
Like the China COVID tariffs, the Trump tariffs will hurt Australian workers.
After all, 1 in 5 Australian workers depend on exporters and exporters pay 60 per cent higher wages on average than non-exporters in union jobs with EBAs. This will be bad for the steel workers of the Illawarra and the aluminium workers of Portland, and will also be inflationary, and put upward pressure on interest rates. That’s why we have seen the impact of tariff decisions (and tariff uncertainty) hitting the Australian share market and superannuation balances.
As a former Australian Prime Minister, could Ambassador Kevin Rudd got an exemption? I am sure he’s trying. But his pre-election comments disparaging Trump have not helped Australia’s interests not have the recent comments of another former Prime Minister Malcolm Turnbull. But to be fair, both Rudd and Turnbull have also been critical of Beijing.
Of course, Australia is not alone. The USA’s North America closet trading partner, Canada is in the same boat, as is Mexico. Canada has just had a leadership election with former Bank of Canada Governor Mark Carney (who was also Bank of England Governor) taking over as Prime Minister of Canada from Justin Trudeau. The Canadian Tories led by Pierre Poilievre are going to paint Carney as a Globalist, more comfortable in Switzerland than Saskatoon, but the tariffs on Canada give the new Prime Minister a chance to wrap himself in the Maple Leaf and fight the Trump tariffs. Carney can also paint Poilievre as Trump lite, and improve the Liberals chances in a contest suffering from the unpopularity of Trudeau. When a central banker can replaced a charismatic second-generation politician as Prime Minister and have a better chance we know we are living in interesting times.
With China and the USA unreliable trade partners, what options does Australia have? The Albanese Labor Government, to their credit have improved relations with our North East Asian trading partners like Japan and South Korea, Taiwan, ASEAN (with the special Australia ASEAN summit in Melbourne last year) as well as Europe and the emerging markets of the Middle East and North Africa (MENA) and Latin America.
We could actually get closer to Canada under their new Prime Minister, given our similar economic and political backgrounds (if not geography) and current situation on steel and aluminium tariffs. Canada has also had its issues with Beijing as well as Washington.
So forget the tyranny of distance, and May the Moose be with you.
Professor Tim Harcourt is the Chief Economist of IPPG at University of Technology Sydney (UTS) and host of The Airport Economist on Ticker.
Tim is also former chief economist of the Australian Trade Commission (AUSTRADE), the Australian Council of Trade Unions (ACTU) and the Reserve Bank of Australia (RBA).
In Short:
– Nigerian officials refute Trump’s claims about U.S. airstrikes, emphasising that violence affects both Christians and Muslims equally.
– Data shows the narrative of Christian genocide in Nigeria misrepresents reality, with most victims having no tracked affiliations.
Nigeria has strongly rejected President Donald Trump’s claim that U.S. airstrikes in the country were necessary to stop a genocide targeting Christians. Nigerian officials insist the violence in northwestern Nigeria affects both Muslim and Christian communities and is driven by complex security and ethnic challenges rather than religion.
Foreign Minister Yusuf Tuggar told the BBC that the attacks are about “protecting Nigerians and innocent lives, whether Nigerian or non-Nigerian,” emphasizing that the strikes, which targeted ISIS-affiliated militants in Sokoto State on Christmas Day, were part of broader efforts to combat terrorism. Trump had claimed that militants were primarily killing Christians at “levels not seen for many years, and even centuries,” but Nigerian authorities reject this characterization.
Data from the Armed Conflict Location & Event Data Project shows that more Muslims than Christians have been killed in targeted attacks between January 2020 and September 2025, casting doubt on claims of a systematic Christian genocide. Bulama Bukarti, a Nigerian human rights advocate, highlighted that in Sokoto State, attacks such as suicide bombings often kill civilians indiscriminately, impacting both Muslim and Christian populations.
Security crisis
Analysts stress that Nigeria’s security crisis is multifaceted, involving extremist groups like Boko Haram, Islamic State West Africa Province, and others, as well as longstanding ethnic and resource-based conflicts between predominantly Muslim herders and Christian farming communities. Bishop Matthew Hassan Kukah, who leads a diocese in the affected area, also confirmed that the region “does not have a problem with persecution” of Christians.
The Nigerian Ministry of Foreign Affairs reiterated that terrorist violence against any community is unacceptable and that the government remains committed to protecting all Nigerians, regardless of religion. Officials warn that framing the crisis through a simplistic religious lens risks deepening sectarian divisions and undermining local efforts to address the broader security threats.
In Short:
– Thailand and Cambodia have signed a ceasefire to end a three-week border conflict, causing over 100 deaths.
– The agreement mandates an immediate halt to hostilities and maintains current troop levels.
Thailand and Cambodia have signed a ceasefire agreement aimed at ending nearly three weeks of intense border clashes that killed more than 100 people and displaced more than half a million civilians. The agreement was signed on Saturday at a border checkpoint in Thailand’s Chanthaburi province by senior defence officials from both countries and came into effect at noon local time on December 27.
The joint statement calls for an immediate halt to all military activity, including the use of heavy weapons, airstrikes and attacks on civilian areas and infrastructure. Both sides also agreed to maintain their current troop deployments, warning that any further movement or reinforcement could escalate tensions and undermine longer-term peace efforts.
The latest fighting erupted in early December after the collapse of a previous ceasefire agreement brokered in October by US President Donald Trump and Malaysian Prime Minister Anwar Ibrahim. That truce unravelled following a landmine incident in November that injured several Thai soldiers, reigniting long-standing tensions along the 800-kilometre shared border.
Humanitarian crisis
Clashes quickly escalated between December 7 and 8, with F-16 airstrikes, artillery barrages and rocket fire reported across multiple border provinces. Cambodia reported at least 18 civilian deaths by mid-December, while Thailand confirmed military casualties of at least 21 soldiers. The violence triggered a major humanitarian crisis, forcing nearly 500,000 Cambodians and more than 150,000 Thais to flee their homes and seek refuge in government-run shelters.
Diplomatic pressure intensified in the days leading up to the ceasefire. Talks were held under the General Border Committee framework between December 24 and 26, while ASEAN foreign ministers convened an emergency meeting in Kuala Lumpur, urging both countries to exercise maximum restraint and honour previous peace commitments.
Fragile truce
The dispute between Thailand and Cambodia has deep historical roots, stemming from disagreements over colonial-era border demarcations and competing claims over ancient temple sites, including the Preah Vihear temple. Although the International Court of Justice ruled in Cambodia’s favour in 1962 and again in 2013, tensions have periodically flared into violence.
Thai Defence Minister Natthaphon Narkphanit said the ceasefire would be closely monitored over the next 72 hours, as both sides assess whether the fragile truce can hold after months of escalating hostilities.
In a groundbreaking meeting in Washington, U.S. President Donald Trump and Australian Prime Minister Anthony Albanese signed a historic rare-earth deal that marks a significant shift in the relationship between the two nations. This agreement signals a potential alignment amid growing concerns over defense, technology, and foreign policy. As both countries face shifting geopolitical dynamics, this deal could redefine their strategic collaboration.
The U.S. and Australia have long been key allies in countering China’s influence, especially in the Indo-Pacific region. This deal, which focuses on rare-earth materials crucial for defense and technology sectors, demonstrates how both nations are looking to strengthen their ties. Australia’s role as a strategic partner is now more critical than ever, with the growing influence of China posing a shared challenge.
Chris Berg, an expert from RMIT University, discusses the implications of this partnership, including its impact on Australia’s security needs and its relationship with the U.S. regarding Taiwan, the Middle East, and the broader Indo-Pacific. From the AUKUS agreement to the U.S.-Australia approach to Palestine, these issues are shaping the future direction of bilateral relations.
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