Trump's Surprising Concession: How Anthony Albanese Influenced U.S. Defense Spending Strategy

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Key Points

US President Donald Trump made a major concession to Australia on defence spending.
There had been pressure from his administration on Anthony Albanese to increase spending.
Albanese’s meeting with Trump was considered by many observers to be a success.

While Donald Trump’s dressing down of Kevin Rudd has sucked oxygen from the prime minister’s White House trip, another response from the US president would have had Anthony Albanese breathing a sigh of relief.

Trump also revealed he’s quite relaxed about Australia’s defence spending.

His administration had been turning the screws on the Australian government and many others around the world over military investment.

In June, U.S. Defense Secretary Pete Hegseth urged Australia to increase its defense budget. This discussion took place on the sidelines of the Shangri-La Dialogue in Singapore with Australia’s Deputy Prime Minister, Richard Marles.

A read-out issued by the Pentagon said: “Secretary Hegseth conveyed that Australia should increase its defense spending to 3.5 per cent of its GDP as soon as possible.”

During a 35-minute press call in the Cabinet Room on Tuesday, President Trump, accompanied by Prime Minister Albanese, was questioned by SBS World News about his views on Australia’s defense spending. Specifically, they inquired if he was content with the current level or believed it should be heightened.

“I’d always like more,” Trump responded.

“But they have to do what they have to do, you can only do so much.”

He went on to praise Australia’s investment in the AUKUS nuclear-powered submarine program.

“I think they’ve been great. They’re building magnificent holding pads for the submarines. It’s going to be expensive too.”

“You wouldn’t believe the level of complexity right? And how expensive it is.

Trump responded by highlighting Australia’s efforts, saying, “They’re developing significant docking facilities because they possess numerous ships and are engaged in many activities. I believe their military is very strong, exceptionally strong.”

For some time, senior members of the federal government, including the prime minister, have been keen to point out Australia would spend the necessary amount rather than being held to an arbitrary figure.

However, this compromise has unfolded behind closed doors.

It appears Albanese held his ground and now has the president’s endorsement.

All taking place with Hegseth a few seats away.