Finance Minister Katy Gallagher has defended the government’s cautious stance on U.S. President Donald Trump’s controversial statement that he envisions turning Gaza into the “Riviera” of the Middle East.
Prime Minister Anthony Albanese and Opposition Leader Peter Dutton have been notably restrained, avoiding any comments that might be perceived as criticism by the Trump administration—likely to protect Australia’s economic and strategic interests.
With the Albanese government seeking exemptions from Trump’s proposed tariffs on Australian imports and looking to secure U.S. support for the AUKUS nuclear submarine deal, officials have been careful in their response.
When repeatedly questioned about Trump’s Gaza remarks—which could imply the forced displacement of over 2 million Palestinians—Albanese stuck to a measured response, reiterating Australia’s longstanding support for a two-state solution.
“I’m not going to, as Australia’s prime minister, give a daily commentary on statements by the U.S. president,” he said on Wednesday.
International crises, including the war in Gaza and Trump’s return to power, are increasingly influencing Australia’s domestic political landscape. With an election on the horizon, leaders are being forced to navigate shifting global alliances and voter concerns.
Speaking on ABC’s Insiders on Sunday, Gallagher was pressed on whether the government feared upsetting Trump. While she did not directly answer, she hinted at the importance of maintaining strong U.S. ties.
“We’ll always make our decisions based on Australia’s national interest. Obviously, America is an important strategic partner,” she said.
“We will navigate the relationship and President Trump’s presidency in accordance with those principles.”
Despite this, Gallagher reaffirmed that Australia remains committed to a peaceful, two-state solution in the Middle East.
“If you’re talking forced displacement … that is not consistent with international law. So our position is and has been very clear and consistent,” she said, noting that bipartisan consensus exists on this issue in Australia.
The government’s restrained response has sparked criticism from both the Greens and former Labor senator Fatima Payman, who accused her ex-party of “doing absolutely nothing.” She also questioned whether the U.S. remains the “best country” to safeguard Australia’s interests.
Jewish and Islamic community groups in Australia also condemned Trump’s remarks, with a senior figure from the Executive Council of Australian Jewry calling them “loopy,” and stating that “no-one” supports the permanent displacement of Palestinians.
Meanwhile, Opposition Leader Peter Dutton offered cautious praise for Trump, calling him a “big thinker and a deal-maker,” but ultimately reaffirmed the Coalition’s backing for a two-state solution.
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