JACQUI FELGATE, HOST: Richo, I have to let you go early.
MATTHEW RICHARDSON, PRESENTER: Why is that?
FELGATE: We've got the Prime Minister on the line, so we'll talk to you next week.
RICHARDSON: Albo! See you next week.
FELGATE: Prime Minister, good afternoon. Thanks for coming on the program.
ANTHONY ALBANESE, PRIME MINISTER: Good afternoon. Sorry about that, Richo.
RICHARDSON: No, it's all good.
PRIME MINISTER: I'm a big fan.
RICHARDSON: You're slightly more important than me.
PRIME MINISTER: You played more games than I did and could take a mark that I could only dream of mate. So, well done.
FELGATE: He doesn't mind stepping aside. PM, thank you for calling in. Obviously, a very big story today. Can I begin with just your response to the Opposition Leader accusing you of letting Australians down by failing to secure the exemption on tariffs?
PRIME MINISTER: Oh, seriously, Peter Dutton had a choice of backing Australia or backing the Trump Administration and has chosen once again, to talk Australia down. The fact is that no other country has succeeded on steel or aluminium tariffs. None have received an exemption. A bit like his nuclear plan, it's just one bit of evidence that Peter Dutton lives in some sort of fantasy land. But it's about time that he took an opportunity, just once, to back Australia rather than talk us down.
FELGATE: You've used the phrase breaching the spirit of Australia and our relationship with the US in relation to the decision by Donald Trump. Have you managed to have a phone call with him since the decision was made?
PRIME MINISTER: We have – well, the decision was made and came into effect less than one hour ago, so we have put in a request. I, of course, have had two conversations with President Trump. We've exchanged correspondence as well – both ways – and we continue to engage and continue to put our case that Australia has a strong case for an exemption. President Trump's argument is that the United States has a trade deficit with various countries. They don't with us. They have had a trade surplus on around about a two to one basis since the Truman Administration. It is in the United States’ interest to continue to have a constructive economic relationship with Australia. By putting this tariff across the board – of course, it doesn't put us at a comparative disadvantage – all it means is that the purchases of Australian steel and aluminium, or from any other country for that matter, will be more expensive in the United States. And that does nothing to help their economy or to help their jobs.
FELGATE: In hindsight, should you have gone to Washington and was Kevin Rudd the appropriate person to remain there?
PRIME MINISTER: Well, no country has received an exemption. I got asked this at the press conference today about the United Kingdom or France. No country has received an exemption. This is across the board, and Kevin Rudd has worked very hard and very effectively. He was meeting with the United States’ representatives earlier this morning. We've been in discussions and so he has been very effective. He met with Mr. Lutnick just earlier today. So, he has had that access to the senior levels of the Administration. We've continued to put forward our case and we will continue to do so as well. It's important to recognise here that the last time when this occurred, during the first period of the Trump Presidency, it took many months for Australia to achieve an exemption.
FELGATE: But I guess – have our two nations ever been more divided than they are right now?
PRIME MINISTER: Well, our country should be united on this. That's my point about Peter Dutton's very disappointing comments –
FELGATE: But our relationship with the US – have we ever been more divided?
PRIME MINISTER: Well, the United States, of course, is having a difficult relationship with the range of its neighbours. Not the least of which, of course, people will be following the relationship between the United States and Canada is, of course, rather extraordinary at the moment and not one that I would have expected to see in my lifetime. But we will continue – I've had constructive dialogue with President Trump. We'll continue to engage constructively. It is in both the United States’ interests and Australia's interest to have a good economic relationship. It benefits both nations, just as our defence relationship benefits both nations as well.
FELGATE: And on that – Pine Gap. Would we look to perhaps reduce US strategic operations there?
PRIME MINISTER: Look, I don't want to interfere with Australia's defence relationships, are in Australia's interests and I'm not bringing them into any equation. What I am arguing for is Australia's economic interests here, the same as the United States. We produce good quality steel and aluminium. It's not a huge amount. The truth is it represents less than 0.2 per cent of the total value of our exports. That is $1 in every $500. Neither is in the top 10 of what Australia sells to the United States. But this is, in my view, an act of economic self harm. It doesn't benefit the United States. It will just lead to higher costs for the purchases of our aluminium and steel. And we will continue to back, though, Australian industry and Australian producers. We have a Future Made in Australia agenda that's very much about our economic resilience and making more things here in Australia. And that includes, of course, our intervention that we had just a couple of weeks ago with the South Australian Government to support the steelworks at Whyalla.
FELGATE: And we're not looking at putting any of our tariffs in of our own?
PRIME MINISTER: Well, the problem with tariffs of course, is that they just increase prices for consumers.
FELGATE: That is true.
PRIME MINISTER: And we have worked very hard to get inflation that peaked above 7 per cent, it was above 6 per cent when we were elected. We've got it down to 2.4 per cent. That has seen interest rates start to decrease. They were increasing when we came to office. That hard work has been important to provide that benefit, when combined with the increase in wages and the tax cuts that we've introduced for every single taxpayer. And we're not going to do anything that's counterproductive there.
FELGATE: And on all of that, the stock market down eight per cent since the tariff announcement from Trump. It has had such a significant impact on our country already, Prime Minister.
PRIME MINISTER: Well, this is why the US stock market, of course, has fallen substantially in recent times. The truth is that free and fair trade benefits the global economy and has benefited the industrialised world. Has benefited, as well, the developing world. The Hawke Government introduced substantial economic reform. Ever since then, it's been a bipartisan position of support for trade. One in four of our jobs is dependent upon trade, which is why my Government will continue to back it.
FELGATE: It must be so disappointing over so many decades and so many years to have had such, like, one of our greatest friends to have ended up in a situation that we're having to have this conversation even today, Prime Minister.
PRIME MINISTER: Well, it is disappointing, Jacqui, which is why we reached out, why we've engaged in both verbal conversations in the meetings that have taken place. Our Treasurer travelled to Washington D.C. just in the past couple of weeks, of course, and that followed up meetings with the Foreign Minister and the Defence Minister. Followed up conversations that I have had with President Trump. Follows correspondence that we've had. We are working very hard with everything at our disposal to argue our case that this is not in the interests of either of our nations.
FELGATE: Are you hoping to have a phone call with Mr. Trump in the coming days?
PRIME MINISTER: I am. I will continue to put our case, and we certainly have not conceded here. What we know is that in a range of decisions that have been made, they've been made and unmade in recent days and weeks. And quite clearly, I think this is a counterproductive decision that should be dealt with. Remember last time around, it took many months of argument and the case being put for Australia to receive an exemption. And my disappointment with the Opposition Leader is that he isn't backing Australia. He is choosing, it would appear, to just back in this decision by the Trump Administration. Whereas what we need to do at times like this is for everyone to back Team Australia.
FELGATE: And just on another quick issue, while I have you, if you don't mind. Crime is obviously the number one topic of conversation in our state. Last time I had you on the program, we spoke about the crime issue in Victoria. Bail reforms announced by the Premier today. Were you aware of that announcement ahead of it? And are you confident that that will have an impact in this state?
PRIME MINISTER: Well, I think that it seems to me – I certainly wasn't consulted, it’s a matter for the Victorian State Government – but it seems to me that's a very sensible decision being made to go forward. I know that nationally the issue of bail has been an issue and it seems to me that the Premier is responding appropriately to community concern.
FELGATE: Ok. And can I just clarify just one earlier remark you made just on the tariffs. Can I just ask exactly what time you were told?
PRIME MINISTER: In terms of the tariffs?
FELGATE: Yep.
PRIME MINISTER: This morning when we were notified. But we continued to argue our case even after there was public reporting. Meetings were taking place in the United States, in Washington D.C. and we'll continue to argue our case.
FELGATE: Really appreciate you coming on the program. Thank you, Prime Minister.
PRIME MINISTER: Thanks very much, Jacqui.