Australia and the U.S. have been allies for more than a hot minute — nearly a century, in fact.

Like most long-term partnerships, the relationship has faced challenging phases, and we are going through one right now.

Donald Trump’s second term as President has presented diplomatic complications for Australian officials, as a history of free trade and security between the allies takes a different direction. The fallout of these tensions could end up significantly affecting aspects of Australians’ lives.

Today, we’ll take a closer look at the changing U.S-Australia partnership and how the evolving friendship of these long-standing allies could affect you.

The U.S. and Australia established formal diplomatic relations in 1940, which means we’ve officially been friends for 85 years.

Diplomats – officials who represent their country abroad – will often talk about the Australian-American sense of “mateship”— a callback to the camaraderie between soldiers from both countries during each of the World Wars.

After World War II, this “mateship” blossomed – more Americans and Australians crossed the Pacific, conducted business, and leaders from both sides developed security and trade ties.

In the decades since, the U.S. has come to rely on Australia as a regional ‘middle power’ – acting as a bridge between America and its economic rival, China.

The U.S-Australia partnership also includes an important strategic alliance, the ANZUS Treaty. Forged between America, Australia and New Zealand in 1951, ANZUS guarantees each country will support the other against aggression from other threats.

The U.S. also work together as part of the Five Eyes countries, an intelligence-sharing pact between Australia, the U.S, New Zealand, Canada, and the UK.

More recently, America cemented itself as Australia’s largest strategic ally after signing the 2021 AUKUS pact alongside the UK, in response to China’s growing assertiveness in the Indo-Pacific region. The deal sets out a plan for Australia to acquire nuclear-powered submarines, at an estimated cost of up to $368 billion.

Another deal that Australia and the U.S. signed was a free trade agreement in 2005, removing tariffs on each other’s imports and exports.

These two deals – AUKUS and free trade – have faced growing uncertainty in recent months.

Donald Trump has roundly changed the way America engages with other countries.

Within weeks of his second term in office, the U.S. President disrupted global markets with his decision to overhaul trade relationships. No country in the world has been exempt from Trump’s sweeping tariff policy, which aims to encourage American businesses and industries to buy local, under his “America-first” banner.

Here’s a quick refresher on how tariffs work: Country A and Country B make the same product. Country A wants its citizens to buy its own version of the product, not Country B’s, so it applies a tariff.

Now, whenever country A imports something from country B, it has to pay a bit extra because of the tariff, which is a tax.

The U.S. has applied two main types of tariffs to Australia: (a) 50% for aluminium and steel and (b) a flat rate of 10% for everything else.

The Coalition struck an exemption in 2018 when Trump embarked on a similar tariff spree in his first term, a deal Labor is hoping to replicate.

AUKUS’ future is now in doubt after the U.S. announced a snap review into the pact.

The reason? Trump wants to make sure the pact aligns with his “America First” agenda (i.e ensure the U.S. isn’t getting ripped off).

The U.S. has also been pushing for Australia (among other countries) to boost defence spending. Responding to this, Australia’s Defence Minister Richard Marles said the Government will determine its defence budget “based on our own national interest”.

Some defence industry experts are convinced the Pentagon’s AUKUS review won’t result in any major overhaul, pointing out that it’s not unusual for new governments to want a fresh set of eyes on a longstanding deal. Defence Minister Richard Marles also pointed to a recent UK review of AUKUS, which resulted in an expanded commitment to build additional submarines (with significantly less media interest).

The Five Eyes alliance has also been tested recently. Four out of five partners – Canada, the UK, New Zealand, and Australia – imposed travel bans and asset freezes on two far-right Israeli ministers. The remaining ‘Eye’ – the U.S. – condemned the move.

It’s easy to feel distanced from discussions about global trade and defence. However, they can impact the everyday decisions we make about what we buy and where we go.

The Federal Government has been rolling out its ‘Future Made in Australia’ program to invest in renewable projects and build up Australian industry. We’re being encouraged to buy local products, with the Government setting aside $5 million to spread its ‘Australian Made’ logo far and wide.

The U.S. has dropped from the third-most popular country for Australian travellers in 2019 to sixth in 2025.

Academics are cancelling trips to the U.S, opting to go elsewhere. A public health researcher at UNSW has even called for Smartraveller – the official advice page for Aussies heading overseas – to downgrade America’s safety rating in the wake of the Los Angeles protests.

A recent poll by Pew Research Centre showed Australians hold some of the world’s strongest anti-U.S. views, with 71% of us holding an unfavourable opinion of our closest ally.

While the majority of Aussies may hold negative perceptions about the U.S, politicians have re-emphasised the importance of the alliance in recent months.

Despite Trump’s controversial tariffs and the uncertain future of AUKUS, Australian officials are continuing efforts to maintain diplomatic ties with the U.S.

Prime Minister Anthony Albanese was expected to talk through some of these issues with Trump at this week’s G7 summit in Canada. But, Trump cut his trip short, returning to the White House as the Israel-Iran conflict escalates.

The Coalition has urged Albanese to do more to secure a one-on-one with Trump, pointing to other world leaders Trump’s met with in recent months. For example, Keir Starmer (UK), Emmanuel Macron (France), and Narendra Modi (India).

Despite this, there’s no evidence of an Albo-Trump feud. In the final leaders’ debate ahead of the May election, Albanese said he had “no reason not to” trust Trump.

After Labor’s landslide win, the U.S. President congratulated Albanese, calling him a “friend”.

Trump’s second term has been marked by his often contentious ‘America First’ policy agenda, but the fallout could lead to Australia strengthening ties with other countries.

You only need to look to Albanese’s first official overseas trip post-election for an example of this. Albanese visited Indonesia’s President Prabowo Subianto and spoke of the “deep trust and unbreakable bond” between the two countries.

Ultimately, it’s worth remembering the U.S-Australia alliance has withstood decades of shifting political priorities.

Leaders come and go, but diplomacy endures.

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