Australian Prime Minister Anthony Albanese has touched down in the United States for a highly anticipated discussion with US President Donald Trump. The leaders are set to focus on strengthening defence and trade relations amid escalating tensions between Washington and Beijing over trade policies.
One of the key issues on the table will be the supply of Australian critical minerals to the US, especially as China has recently imposed stricter controls on its rare earth exports.
Additionally, the summit will cover the AUKUS security alliance-a trilateral pact between Australia, the US, and the UK-aimed at counterbalancing China’s expanding military influence in the Asia-Pacific region.
Timing and Details of the Trump-Albanese Meeting
Albanese arrived in Washington, DC late Sunday night (around 03:50 GMT Monday) and is scheduled to meet President Trump at the White House on Monday. Although the exact timing has not been officially confirmed, Australian news outlets report the meeting will occur at 15:00 GMT and will be broadcast live.
This will be the first formal bilateral summit between the two leaders. They previously had a brief encounter during the United Nations General Assembly last month and have held four phone conversations since.
Some Australian media have expressed criticism over the delay in arranging this face-to-face meeting.
Despite occasional disagreements on matters such as trade policies and the recognition of Palestine, the US and Australia have maintained a robust partnership over the past decade, according to Charles Edel, senior adviser and Australia chair at the Center for Strategic and International Studies (CSIS).
Upon arrival, Albanese tweeted, “We’ll work hard here to create benefits for Australians back home, from regional security to trade and investment.”
Key Topics for Discussion
Collaboration on Critical Minerals
The summit is expected to explore enhanced cooperation on critical minerals, with Australia considering sharing portions of its forthcoming strategic mineral reserves with allies, including the US.
This dialogue comes as China, which dominates the rare earth metals market, tightened export restrictions on October 9.
The US heavily depends on Chinese rare earth metals, vital for its defence manufacturing. Between 2020 and 2023, China supplied 70% of the US’s rare-earth imports, according to the US Geological Survey.
Rajeswari Rajagopalan, a senior fellow at the Australian Strategic Policy Institute, noted that Albanese’s visit coincides with rising US-China tensions fueled by trade disputes and China’s export limitations on rare earths.
Australia boasts reserves of 31 critical minerals, including Graphite (key for batteries and electronics), Vanadium (used in steel production), Tungsten (important for electronics and defence), and Zirconium (utilized in ceramics and nuclear reactors).
Among these are rare earth elements like neodymium, praseodymium, dysprosium, and yttrium. While rare earths are a subset of critical minerals, the broader category encompasses a wide range of elements essential for modern technology and national security.
Australia accounts for 33% of global lithium production, surpassing China’s 23%, though China refines 57% of the world’s lithium, according to the International Energy Agency.
Australian Treasurer Jim Chalmers emphasized in a recent CNN interview, “We have a significant role to play globally in critical minerals and rare earths, and we intend to collaborate with partners worldwide, including the United States, to maximize this opportunity for Australia.”
Monday’s meeting offers Albanese a platform to position Australia as a dependable alternative supplier of rare earth metals to the US.
Defence Partnership and the AUKUS Pact
The AUKUS security agreement, initiated under President Joe Biden in September 2021, commits Australia to invest billions over the next 15 years in submarine development.
Designed to bolster security and maintain strategic balance in the Asia-Pacific, AUKUS responds to China’s expanding military presence. The pact fosters collaboration on advanced defence technologies, including cyber warfare, artificial intelligence, quantum computing, and underwater systems.
Australia aims to leverage US and UK expertise to acquire nuclear-powered submarines, planning to purchase three used vessels from the US, with options for two more in the future.
The three nations also intend to co-develop a new class of nuclear submarines for the UK and Australian navies.
Reports suggest the Trump administration is reviewing the AUKUS deal to ensure alignment with its America-first policy.
During a February press conference with UK Prime Minister Keir Starmer, Trump appeared to acknowledge the pact, indicating it would be a topic of discussion.
Meanwhile, the Quad security forum, which includes Australia, the US, Japan, and India, has received less focus from the Trump administration.
Australia hopes the summit will solidify AUKUS commitments. Canberra has already pledged $1 billion to support US manufacturing, with an additional $1 billion expected by year-end.
Edel highlighted that the meeting might address Australia’s financial contributions to AUKUS, including investments in US submarine production and the expansion of the Submarine Rotational Forces-West facility in Perth.
Australia is also part of the Five Eyes intelligence alliance with the US, UK, Canada, and New Zealand, sharing intelligence to enhance collective security.
Trump has urged allies to increase defence spending to 3.5% of GDP. Australia currently allocates 2% of its $1.75 trillion GDP (2024 figure) to defence.
Australia argues that its overall contributions-such as military infrastructure development, joint weapons production, and hosting US bases-extend beyond mere budget percentages.
Prime Minister Albanese has also challenged the emphasis on GDP percentage as the sole metric for defence commitment.
Despite efforts to boost defence spending, it remains uncertain whether Australia will meet Trump’s expectations.
Trade Relations and Tariff Issues
Last year, the US enjoyed a trade surplus of $17.9 billion over Australia, according to the US Trade Representative’s office.
Australia benefits from relatively low US tariffs, facing a standard 10% tariff on most exports, with higher duties of 50% on steel and aluminium.
When the US imposed the 10% tariff on April 1, Albanese criticized the move, stating, “These tariffs lack justification and undermine the foundation of our bilateral partnership.”
During the summit, Albanese is expected to press for tariff reductions.
Under Albanese’s leadership, Australia has strengthened trade ties with China, its largest trading partner. Exports of iron ore and coal remain vital to Australia’s economy.
In 2023, Australia exported $143 billion worth of goods to China, compared to $13.5 billion to the US, according to the Observatory for Economic Complexity.
Albanese reaffirmed Australia’s commitment to a steady and pragmatic relationship with China during his July visit to Beijing.
Chinese President Xi Jinping expressed willingness to advance bilateral relations.
However, Australia faces pressure from the US to counterbalance China’s military expansion in the region.
Australia’s close security ties with Western allies have strained relations with China. Following Australia’s call for an independent COVID-19 investigation, China imposed steep tariffs on Australian exports.
In November 2020, China levied tariffs exceeding 200% on Australian wine and targeted other products like barley, cotton, timber, and coal. Most of these tariffs were lifted by 2024.
Despite these challenges, Albanese is actively pursuing diversification of Australia’s export markets.
