TV interview with Michael Rowland, ABC News Breakfast

Michael Rowland, Host: Lots of interest into how the second Trump Presidency could affect the Australia-US relationship. On that front let's bring in the Foreign Minister Penny Wong.

Minister, very good morning to you. What was your first reaction when you knew it was clear that Donald Trump was to become President the second time around?

Penny Wong, Foreign Minister: Well first, I want to congratulate President Trump on his election. It certainly was a decisive victory, and we look forward to working with him.

We have an alliance that's based on our values, on our history and on our shared strategic objectives, and, you know, it is a timeless alliance, and we look forward to working with him.

Rowland: Has the Prime Minister as far as you know been in touch with Donald Trump?

Foreign Minister: It's very early days. What I would say is we have been – the Prime Minister made some public statements yesterday. Obviously we look to particularly prioritising AUKUS in our engagement, which is the thing that we have been most focussed on in the lead up to this election.

Rowland: It's been revealed in the last week or so that in 2017 Anthony Albanese said Donald Trump scared the hell out of him. He didn't use the word hell – it was something stronger. Could that make for an awkward first conversation?

Foreign Minister: Oh, Michael, this is an alliance that's bigger than any, you know, one individual’s past comments. What it is about is, as I said, you know, our shared interests. We both want a stable region, a peaceful region, and we look forward to working with Mr Trump, President Trump, and the new administration on those objectives.

Rowland: I want to drill down into some of those issues in a moment, but speaking of inflammatory past comments, do we expect Kevin Rudd to stay on as Australia's Ambassador to the US?

Foreign Minister: Mr Rudd has been doing an outstanding job, an excellent job as Ambassador and, you know, he has worked with both Republicans and Democrats. In fact, the legislation that will was passed by the Congress in relation to AUKUS with bipartisan support was driven by Mr Rudd, and I'm confident that he'll continue to engage with both Republicans and Democrats.

Rowland: Okay, and stay on as an effective in your view Ambassador for Australia in this new political environment?

Foreign Minister: He's a very effective Ambassador and we will continue to ensure that we will, and he will continue to ensure he works with both Democrats and Republicans. He's delivered a lot for the country in his period since he's been Ambassador.

Rowland: Let's talk about some of the potential issues for Australia. I guess, Penny Wong, the clearest and most present danger is Donald Trump's threats, promise really; to bring in across the board 10 to 20 per cent tariffs on all countries, we assume Australia as well. What is your government going to do about that?

Foreign Minister: First, Mr Trump did campaign on change, and so President Trump no doubt will deliver change, and we should expect that.

I would first say to Australians we should be confident; we should be confident in ourselves and in our ability to work together to progress Australia's interests. We should be confident about our ability to express our views and to deliver on our interests, and that is how the Government will be approaching this.

Rowland: Okay, Malcolm Turnbull as Prime Minister pushed back on Trump 1.0 on the steel and aluminium tariffs. Is the Prime Minister planning to do that again if these tariffs are indeed introduced on Australian goods going to the US?

Foreign Minister: Prime Minister Albanese will always stand up for Australia's interests and he will always advocate for Australia's interests, and you've seen that in his work internationally since he was elected.

I would make the point, you know, obviously, there will be things on which we disagree. For example, the previous Trump administration withdrew from global climate commitments. We did not. So the alliance is big enough and strong enough to comprehend differences in policy because of its history and because of its shared objectives.

Rowland: It's more than likely, speaking of global climate agreements, Donald Trump will as President again pull out of the Paris Agreement. How damaging could that be?

Foreign Minister: Well, Australia won't be pulling out of the Paris Agreement. You know, this government believes, and I think this reflects the views of the overwhelming majority of the Australian people, that climate change is something we have to act on.

We see the imperative of transitioning our economy so that we are competitive in a world where so many major economies, the majority of the global economies, were moving to net zero by 2050.

So there's an imperative in terms of the climate but there's also an economic imperative because we want our economy to be as competitive as possible in a very different world.

Rowland: What's your view based on I guess the experience first time around, your observations about how committed a Trump Presidency would be to the Asia‑Pacific region more broadly, particularly confronting the threat that China poses?

Foreign Minister: Mr Trump said a lot of things about China. I think we know that the US-China relationship is a relationship where there's always going to be competition. We know that and I think Mr Trump – President Trump has made that clear as well.

In many ways this is no different to the situation Australia currently faces where we have our principal strategic relationship with the United States, the long-standing alliance, you know, long-standing friendship, shared democratic values, and our principal trading relationship with China. And you've seen the government work very hard since we came to government to bring a mature, considered approach to the China relationship and to stabilise it and to work towards the removal of the trade impediments that were imposed under Mr Morrison and Mr Dutton.

Rowland: Sorry for that background music, I'm not sure how much of it got back there to Canberra.

Foreign Minister: Oh, I thought it was it was very calming.

Rowland: It was pretty loud here. It wasn't calming to me, let me assure you, Penny.

Hey, listen, I want to ask you about a political, a domestic political concern potentially. Time and time again voters told me moving around here in America before the election, they certainly told exit pollsters that the economy was far and away the most important issue. Officially the economy's not doing too badly here, but so many Americans are feeling the pinch in terms of still high inflation when they go to the supermarket or petrol station.

High inflation can be, and it's proved to be here, a government killer. Are you worried about that heading into your election next year?

Foreign Minister: Oh, we're worried about the cost‑of‑living pressures that Australians face, and whilst inflation has dropped substantially since we came to government, we know that people are doing it tough. People are finding it hard to pay the bills.

The cost of living is biting and, you know, as you move around the country and as you talk to Australian families, that is really clear. That's why we have made such a priority on delivering cost‑of‑living relief, whether it's the energy bill relief, a tax cut for every Australian taxpayer, cheaper childcare, cheaper medicines, working to increase bulk billing and strengthening Medicare. Now all of these were opposed by Mr Dutton, but they are an imperative. They're critical for our government to respond to the cost‑of‑living pressures Australians are facing.

Now we will add to that in a responsible way because we understand the situation that Australians and their families are facing.

Rowland: Foreign Minister Penny Wong, really appreciate your time this morning. Thank you.

Foreign Minister: Good to speak with you.