Anthony Albanese has responded to the United States’ calls for a significant increase in defense spending due to concerns about China. He has also criticized the decision by Donald Trump to double tariffs on steel and aluminum imports.
Pete Hegseth, speaking on behalf of the US’s allies, including Australia, urged these countries to increase their defense spending to 5% of GDP, warning that China is preparing to use military force in the Indo-Pacific region. Albanese stated that Australia has already committed to additional investment in defense and will continue to invest in its capabilities and relationships in the region.
Australia currently allocates approximately 2% of its GDP towards defense and is expected to increase this to 2.4% by 2033-34. The United States would like Australia to raise its defense spending to 3% of GDP.
Source: https://www.theguardian.com/australia-news/2025/jun/01/anthony-albanese-responds-to-us-pete-hegseth-push-for-huge-rise-in-defence-spending-as-it-stokes-china-fears