Former Treasurer Joe Hockey address the Meat Processing & Export Conference yesterday.
HAVING spent time with him on the golf course and around the White House, former Federal Treasurer and US Ambassador Joe Hockey gave a personal insight into the mind of US President Donald Trump during a presentation to an Australian beef industry audience yesterday.
The Meat Processing & Export Conference on the Gold Coast is being attended by about 400 industry stakeholders from across Australia and overseas.
Front and centre in discussions was Trump’s tariffs announced last Thursday, and the implications for Australian and world beef trade. The fact that today’s gathering was postponed by four weeks due to Cyclone Alfred has provided an unforeseen benefit, in that it comes just five days after Trump’s tariff announcements.
Mr Hockey gave a broad-ranging and at times blunt assessment about the tariff developments, the way Trump thinks, and what possibly lies ahead.
“It still astounds me that people haven’t listened to Trump’s tariff mantra that’s he’s been projecting for years.
“He has been entirely consistent in his views about tariffs at least since an interview with Oprah Winfrey back in 1981 – so why are we surprised at what’s happened this past week,” Mr Hockey asked.
“He sees tariffs as the solution, but the first time around (2016 election) he opposed tariffs on various countries, because in his view, his own team ‘let him down’.”
“This time, he is much better prepared, and he sees tariffs as the solution to America’s economic woes.”
Part of the 400-strong attendance at the MP&E conference on the Gold Coast this morning
Mr Hockey said the typical ‘swing voter’ in the US was a ‘Mary Milwaukee’, 43 years of age, a church-goer twice a week, gun owner, whose husband was one of two million truck drivers in the US, and she works at Walmart at a reasonably senior level for US$15/hour. His oldest son did two tours of duty in Afghanistan and she dreams of her daughter going to College one day – but she knows she can never afford it.
“She’s pretty traditional, and every night she turns on the TV and political commentators are laughing at her and what she believes in.
“She feels small and insignificant, and along comes Donald Trump,” Mr Hockey said.
“She does not particularly like Trump, but for the first time someone says, ‘I not only hear you, but I’m going to fight for you, because I’m going to break down all of those things that laugh at you and take away the hopes that you have.
“I’m going to get you a pay rise, and make sure that your husband still has a job; stop the illegal immigrants having an impact in your community, and stand up for you and what you believe in. And you know what, I’ve got the power and the money to be able to do that’.”
Mr Hockey made the point that more white women in the US voted for Trump over Biden, Hillary Clinton or Karmala Harris.
“He has advocated consistently for tariffs for decades, but he just can’t get it in his head that a tariff is a tax on consumers,” he said.
So what is the best move for Australia, and the Australian red meat industry at this point?
Two days before last week’s tariff announcement, Trump had listed US ‘trade irritants’, including pharmaceuticals, beef and new coal, Mr Hockey said.
“But the starting point with Trump is to have a relationship.
“With anyone you want to negotiate with, you start with a relationship. Frankly, Prime Minister Anthony Albanese was intimidated into not wanting to directly engage with Trump (the candidate), and as a result there’s no foundation to a relationship today. Other leaders have that relationship,” he said.
“I’d now be surprised if Donald Trump takes a call from Prime Minister Albanese, any time before the upcoming Australian election.
“He (Trump) will engage after the election, I’m sure,” Mr Hockey said.
“But I know what Trump is doing: He’s applying it (tariffs) to everyone, and, as well as wanting the revenue, he’s using it as a weapon.”
“But Donald Trump plays checkers, not chess,” he said
“He doesn’t think three steps ahead.”
- More on Joe Hockey’s AMIC conference address, plus others, today.
The western world was built on protectionism and tariffs. Since the early seventies, protectionism for small business has been gradually (gradualism) removed. This has meant small businesses have largely disappeared, including smaller farmers. Australia once had a clothing and foot wear industry, vehicle manufacturing and many more that no longer exist in Australia.
Deregulation and free trade let the the corporations control our marketing, instead of minimum prices. We once had a guaranteed price for wheat in Australia based on just below cost of production, so as to not encourage growers to put more in, but a safety net. The government never had to put any money in for its 50 or so years as the market knew the bottom price and had to pay up. Get big or get out was the term used to deregulate. Trump is protecting the USA. That’s his job, firstly. Secondly, the USA is an ally.
Don, you also had wheat quotas. Boards for every thing. The wool commission pumped up prices until the reserve price collapsed. Trump is ignorant; running up score against Australia because he can. They could bring their beef in here with proper tracing. Tariff’s stifle trade. Having a footwear and clothing industry when we are at full employment would result in really expensive clothes and shoes. Our car makers were producing cars we didn’t want. The used to be buggy whip makers – do they want to bring them back? The world has moved on and the private sector thinks faster then governments. Manufacturing goes where workers are cheaper and regulation of environment is weak. Comrade Don, central planned economies have largely failed.