With Australia’s mining powerhouse dependent on China, here’s how a Donald Trump win could impact WA

Donald Trump’s return to the White House has sparked intense debate 15,000 kilometers away inside Australia’s economic giant – a place so dependent on mining, oil and gas and China.

Championing Kamala Harris’ victory ahead of the US election, Western Australia’s premier warned of the “dark paths” now represented by President-elect Trump.

“He wants to destroy trade with China, he wants to destroy any trade ties between the United States and China,” Roger Cook said.

When asked if he risked incurring President Trump’s wrath by voicing his concerns, Cook said he “didn’t care.”

“Everyone should be aware of any politician who seeks to create fear, division and hatred in society,” he said.

“We depend on our political leaders to bring the community together and move forward — and it’s clear that the Trump administration does not represent that particular goal.”

The next day, as it became clear that Trump had become only the second president to return to office for a second consecutive term, the prime minister toned down his rhetoric.

“Frankly, I don’t think the US is looking at us particularly closely at the moment,” he told parliament.

And on Thursday, Cook congratulated Trump “on a successful campaign.”

“The United States is a close and important partner to Australia and Western Australia. This is one of our largest sources of investment and our partnership will remain strong in the future – especially thanks to the AUKUS agreement,” he said.

But it is clear that even without Perth’s direct connection to WA, there are predictions that the effects will be felt in Western Australia.

“There is no doubt that we are currently experiencing a period of major changes in global trade relations that could impact our largest customer, which is China.”

The reaction of big business

Bankwest Curtin Economics Center professor Mike Dockery shared the prime minister’s concerns.

“If we see these tariffs (on China) go up, it will impact the global economy, it will trickle down to us and it will be inflationary, it will be bad for real wages, it will be bad for WA,” he said.

“It will be a decrease in demand for our iron ore, it is quite possible that the price of iron ore will fall…we know that for every dollar that it falls, the WA budget will be affected.

“On the other hand, one of our main exports to the U.S. is gold, and in times of uncertainty the price of gold goes up… there are always two sides to the coin.”

Warren Pierce, executive director of the Washington State Mining and Exploration Association, said Trump’s victory is not necessarily bad news for Washington state.

“There are certain people who are very focused on the (green) energy transition and see President Trump as slowing down that process,” he said.

“But there are also many among our members who still recognize the importance of energy reliability and security and want to see it emphasized, and they will welcome a Trump presidency.”

In news posted on her website, one of Australia’s richest people, Gina Rinehart, said she opposed the possibility of Trump introducing tariffs.

She expressed concern that it could spark a trade war between the US and China, but still strongly supported Trump.

The mining magnate even attended a campaign event at Mar-a-Lago.

But another WA mining giant, Andrew Forrest, played down concerns about a trade war.

“The amount of horsepower in the reservoir of the Chinese economy and its ability to stimulate itself is phenomenal… so I don’t share (Mr Cook’s) concerns,” he said.

“The largest trading partner the United States has ever had and will ever have is China. Let’s not forget that they butter each other’s bread.”

Defense Industry Minister Paul Papalia was unfazed.

“We have really long-standing and deep relationships in business, academia, politics, between Western Australia and the United States.

“The largest foreign investor in Western Australia is the United States. This won’t change.”

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