Television Interview, Sky News - First Edition

SUBJECTS: Steel and Aluminium Tariffs; US relationship.

PETE STEFANOVIC, HOST: We'll be watching. Appreciate that, Tom. Well, last week, speaking of the ageing process, let's go to the Defence Minister Richard Marles now. A few more grey hairs this week, Richard.

RICHARD MARLES, DEPUTY PRIME MINISTER: That's rough.

STEFANOVIC: Just off the back of Tom Piotrowski saying it's been, you know, it hasn't exactly been a quiet week. How are you holding up?

MARLES: I'm all right, look. Well, you know, we live in interesting times, as they say, and obviously the decisions that we've seen in relation to tariffs are really disappointing. Yeah, but it's not unexpected. Like Donald Trump, when he came to power, said that. Well, actually, when he was campaigning for the election, said this is what he was going to do and he's imposed it across the board in relation to every country. And we're now feeling that.

STEFANOVIC: Ok, so in this minute, how would you describe Australia's relationship with the United States?

MARLES: Well, we're obviously disappointed with this decision, but, you know, our Alliance with the United States remains profoundly important. I mean, it's the cornerstone of our national security and it will continue to be so and will continue to advance Australia's interests in the context of the Alliance. And there are a whole lot of equities in relation to that. We can talk about how our defence forces work together and everything that we see in that space, but it includes what we do economically as well. And on the question of tariffs, I mean, we will continue to advocate to America for there to be exemptions. Last time it took nine months before an exemption was provided to Australia, when President Trump was last the President. And so we'll continue to make that argument.

STEFANOVIC: Is the US a reliable partner?

MARLES: The US is a reliable partner, and we will continue to work with the US. 

STEFANOVIC: Still? 

MARLES: Yes. And, you know, in terms of all the work that we do across our defence forces, I mean, we are deeply engaged with the United States defence forces as they are with ours. And as I said earlier, it is obviously our most important defence relationship. It remains at the cornerstone of our national security. And, you know, we continue to work very deeply with the United States.

STEFANOVIC: Can you give any guarantee that our beef and pharmaceutical exports won't be targeted next?

MARLES: Look, what we will be doing in relation to all our exports to the United States is to make the argument about why it is in the interest of the United States for those exports to go into the United States tariff free, as it is for the United States exports to Australia.

STEFANOVIC: But on the tariff, yes, on the topic of beef and pharmaceuticals though, I mean, that's much more lucrative for us, is it not, than steel and aluminium. So, are you worried that that is that they are going to be targeted next?

MARLES: Well, we'll continue to make the arguments in the United States. 

STEFANOVIC: I mean the policy though, you can’t give that guarantee.

MARLES: Well, the policies of the US are well known and President Trump was completely upfront about what he intended to do during the US Presidential election and he is now doing that having been sworn in as the President. So, I mean, we've seen that and he's talked about putting in place tariffs across the board. So, clearly we see that as something that is potentially there. And it's in that context that we'll continue to make the argument around why it would benefit Australia, but benefit the United States for there to be an exemption in relation to Australia.

STEFANOVIC: That's going to hurt us though, isn't it? That'll hurt us even more, won't it?

MARLES: Well, you know we will work through this, Pete, and we'll work through it in terms of whatever we can achieve with the United States and we'll work through it in terms of the diversification of our, our export markets. I'd make the point that, you know, the United States is bringing online an across the board tariff in relation to all its trading partners. It means that, you know, the relative cost of Australian imports to any other country's imports remains the same. It is a disappointing decision that's occurred in relation to steel and aluminium. There's no denying that we will still continue to trade with the United States and we will always continue to look for a diversity diversification in our trade.

STEFANOVIC. So, let's get to defence because Chris Barry, the former head of the ADF, says we need a Plan B for Australia's submarine fleet in case AUKUS falls apart. Can the US be trusted to see this deal through?

MARLES: Well, yes, and it can be trusted and you know, I understand that I'll consistently be asked these questions as I have been for the last three years and that'll be the case going forward. But if you look not just at words but at actions, in terms of where Republicans in America have been, where Trump Republicans in America have been, they have been supportive of AUKUS, they've been supportive of AUKUS in the US. So, you don't need a plan B. When legislation went through, we are working with the United States to bring into being AUKUS because AUKUS is in the strategic advantage of the United States. It makes sense for the US to have an ally in Australia with this capability, but it makes sense for the US to have Australia supporting the US Industrial base, which will give rise to a greater availability of U.S. Virginia class submarines for the United States. And that's a point that when I met with Secretary Hegseth, he completely understood and very much welcomed the contributions we were making, yes. 

STEFANOVIC. So, you went over there, right? You had a huge cheque, you gave it to them. The Treasurer was there, the Foreign Minister was there, Rudd is there. The PM couldn't get the President on the phone. Are you all an ineffective leadership group?

MARLES: Well, firstly, the Prime Minister did speak with President Trump, and has done so a couple of times.

STEFANOVIC: Yeah, but not after the congratulatory messages.

MARLES: Well, that's not right, Pete. You know that the Prime Minister spoke with President Trump, spoke with him specifically about tariffs.

STEFANOVIC: Yeah, but not in recent weeks though, right?

MARLES: The Prime Minister has spoke with President Trump on the phone at that time.

STEFANOVIC: Yeah, but not in recent weeks.

MARLES: We've been engaging with the United States and we'll continue to engage with the United States. And in relation to the question of AUKUS, as you asked, what we've been hearing is positive comments from the United States, from this Administration about the role that AUKUS plays in the advantage of the United States.

STEFANOVIC: Okay, Richard, you've been kind with your time this morning as always. Thank you so much. We will talk to you again soon. 

ENDS