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Liberals need to reconsider loyalty to the American Alliance

By Scott Prasser - posted Monday, 20 April 2026


In light of President Donald Trump’s tariff announcements, destructive Middle East policies, and the resulting economic crisis and criticisms of Australia’s value as an ally, it is time to seriously review whether the long-running Australian-American Alliance needs a major recalibration, though not, at this stage, a termination.

The American Alliance has been the mainstay of Australian foreign and defence policy since the Japanese attack on Pearl Harbour in December 1941, when Labor prime minister, John Curtin stated, “that Australia looks to America” for its security, given that our then traditional ally, Great Britain, could no longer provide the needed support.

The Alliance has largely had bipartisan support, with some misgivings from the left of the Labor Party. Privately, the Liberals, too, had regrets, more about the passing of the British Empire hegemony than for any real policy reasons. Post World War II, as Britain withdrew from “East of Suez”, its colonial empire disappeared, its economy stagnated, and it turned to Europe. Liberal-led Coalition governments enthusiastically embraced the American Alliance.

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Former prime minister Bob Menzies may have been “British to the bootstraps” and loved the royal family, but he knew that power had shifted to America and Asia was undergoing a major transformation. Menzies’ political trick was skilfully camouflaging this substantive and necessary change in allegiances while publicly effusing over the old links. It gave the illusion of continuity at a time when Australia and the world were rapidly changing.

And Australia, perhaps more than any other country, has not just “looked to America” but supported it with hardly a hesitation throughout the Cold War, in conflicts from Korea to Vietnam, Iraq and Afghanistan, votes in the United Nations, and through extensive defence equipment procurement as the latest AUKUS submarine deal testifies.

The support was for more than just national security reasons. Australia “looked to America” because we believed it provided moral leadership for the West, was the progenitor of democracy, a bulwark against oppressive Communism and dictatorships, and was mostly on the “right”. Each new Australian prime minister could not get to Washington quickly enough to be seen shaking hands with whoever was president to re-cement the Alliance and Australia’s place in it.

That honour, that respect, that support has, if not gone, at least been greatly dissipated in light of President Trump’s current Middle East policies, the economic mess it has created, and the unconditional support for Israel. Trump’s recent declaration that “a whole civilisation will die” if Iran did not accept America’s demands shocked many Australians. That it was said by an American president made it worse.

Added to this was Trump’s tariff announcements last year, which further reinforced just how one-sided the Alliance is. We always knew that, but Trump, never one for diplomatic politeness, now rubbed our noses in the reality.

If the “balloon goes up” and the Australian prime minister calls Washington for help, will anyone answer or might the response just be “from where?”

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All this has important domestic political implications.

For the Liberals, continuing uncritical support for the Alliance while ignoring Trump’s flaws risks alienating voters, as it seems Australia is too easily sacrificing our political sovereignty and integrity on the altar of defence, self-interest and misguided loyalty to an increasingly erratic ally.

The Liberals face a further problem. Trump is inaccurately painted as a “conservative”, so many conflate his policies and style with centre-right parties like the Liberals, thus harming their wider electoral appeal. Trump is anything but a “conservative” as his fiscal profligacy, attack on free markets, and repugnant language indicate.

By contrast, in both policy and political terms, the Albanese government can more easily edge away from the Alliance publicly, in symbolic, if not substantive, terms. By occasional and legitimate expressions of concern about Trump’s policies, Labor can outflank both the Greens and the Liberals.

Liberals need to reconsider where they stand on the Alliance. Should they maintain their unswerving commitment or take the lead in reframing it and, for once, start setting the agenda rather than just reacting to its opponents?

 

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This article was first published in the Australian Financial Review.



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About the Author

Dr Scott Prasser has worked on senior policy and research roles in federal and state governments. His recent publications include:Royal Commissions and Public Inquiries in Australia (2021); The Whitlam Era with David Clune (2022), the edited New directions in royal commission and public inquiries: Do we need them? and The Art of Opposition (2024)reviewing oppositions across Australia and internationally.


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