Relationship conflict between USA and Australia. Trade deal concept.

US Putting Australia at Risk: 5 Geopolitical Effects You Need to Know

1. US-China trade war hurting Australian economy

Australia is reportedly facing a very serious threat to it’s economy from the US-China trade war, as the domestic economy is taking a big hit. Andrew Charlton, a director of economic strategy firm AlphaBeta and former economic adviser to Kevin Rudd during the global financial crisis, said: “We have a number of really important frailties in our economy, like very high debt levels, like the ongoing playout of a housing correction, it’s only been this week that the [Reserve Bank of Australia] has downgraded our GDP growth.” These negative effects have been clearly blamed on the US-China trade war, and their impact on Australian markets, with the ASX down and $50 billion wiped off Australian stocks this week. Despite the many worries of the risk of the trade war on the Australian economy, there is still confidence, as Treasurer Josh Frydenberg said: “We shouldn’t overreact to these developments but we should recognise that China’s currency moves and the increase in US tariffs are an unwanted escalation.” It is clear that any further economic escalation from China or the US could plunge the Australian economy.

2. US wants Australia to oppose China

The US sees Australia as a vital partner to oppose China’s economic and geopolitical influence, as US secretary of state Mike Pompeo said The U.S.-Australia alliance is “more vital than ever,” adding: “I want Australians to know they can always rely on the United States of America.” It is clear that the US intends to underline Australia’s importance in the fight against China, knowing that their economy is suffering from the situation. It remains to be seen how Australia will respond, but it appears unlikely that they leave the US’s side.

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3. Have US-Australian relations always been about China?

4. Australia finally opposes US

5. The need for US fuel remains

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