Tensions have risen in the United States Senate, with one senator calling the decision to impose tariffs on Australia "insulting", saying it undermined national security and damaged relationships.
US trade representative Jamieson Greer was questioned about Australia by senator Mark Warner, a Democrat from Virginia. Warner argued the planned tariffs — alongside the resulting market downturn — showed that the economy was "in hospice".
Warner pressed Greer on why Australia, a key ally, was "hit" with a 10 per cent tariff, citing the long-standing free trade agreement and a trade surplus in the US' favour. Greer responded the US should be "running up the score" on Australia.
'Bad math on steroids'
Calling the Trump administration's tariff plan "bad math on steroids", Warner challenged the logic of targeting allies like Australia.
"Senator, Australia has the lowest rate available under the new program," Greer said, referring to the baseline 10 per cent tariff applied globally. "We're addressing the $1.2 trillion deficit — the largest in human history — that president [Joe] Biden left us with. We should be running up the score in Australia."
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Warner pushed back: "We have a trade surplus with Australia. We have a free trade agreement. They're an incredibly important national security partner. Why were they whacked with a tariff?"
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Greer pointed to restrictions on US meat imports as justification for the tariffs, a topic that earned the spotlight in Trump's recent tariff speech.
"Despite the agreement, they ban our beef, they ban our pork, and they're getting ready to oppose measures on our digital companies," Greer said. "It's incredible."
Australia has strict controls on US beef and pork imports due to concerns about bovine spongiform encephalopathy, also known as mad cow disease. Earlier in the hearing, Greer called these restrictions "specious, fake science grounds".
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Warner continued his critique, accusing Greer of dodging the central issue and harming key alliances.
"You're a much smarter person than that answer," he said.
"The idea that we are going to whack friend and foe alike — and particularly friends — with this level [of tariffs] is both insulting the Australians, undermines our national security, and frankly makes us not a good partner going forward.
"The lack of trust from friends and allies based upon this ridiculous policy that goes into full effect at midnight tonight is extraordinary.
"I'll go back to what the market believers believe today what is happening — a good day in hospice. I'm afraid that if we keep these tariffs in effect, we're looking like an economy that will be in hospice."
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