Don Farrell warns Coalition that blocking European Union trade deal will have Trump tariff implications

Trade Minister Don Farrell has warned the Liberals that “protectionism has consequences”, linking US President Donald Trump’s routing in the midterms to the Coalition’s opposition to the free trade agreement with the European Union.

Nationals Leader and shadow trade minister Matt Canavan has cited climate change and farming opposition to the trade deal as the reason the Coalition should sink the agreement.

Liberal Leader Angus Taylor belatedly signed up the Opposition as a whole to the Nationals’ position, saying it was a ”dud deal” for farmers.

But speaking to the European Australia Business Council annual general meeting in Sydney overnight, Senator Farrell said that Donald Trump’s decision to back tariffs over free and fair trade had not worked for US President at the ballot box.

“Our message remains clear and resolute. Countries that close themselves off from the world or subvert the global rules of trade are not the countries that will succeed,” he said, in remarks obtained exclusively by The Nightly.

“Success will only come to those that build strong partnerships, diversify their markets and remain active participants in the global economy.

“Protectionism has consequences. We have seen this around the world — acts of economic self-harm that result in higher prices for consumers and less opportunity for exporters.

“The American consumers have made it clear what they think about tariffs and its impact on the cost of living.

“Australia — together with our partners, like the EU — will continue to push back against this tide of protectionism and isolation because trade creates jobs, attracts investment, drives productivity and strengthens economic resilience.

“There are those who would see this deal collapse based on their ideological opposition to free and fair trade and their own political ambition. If it fails, there’s no second chance. We cannot afford to miss this opportunity.”

US Republicans are continuing to blame President Donald Trump’s tariffs imposed on countries like Australia — which runs a trade deficit with the US and has a free trade agreement — as a core reason for why the party lost heartland seats in places like Kansas and Texas.

Former Republican Senator Pat Toomey said that the reason the party lost was not just because of the war in Iran.

“The war is not the only cause. Arbitrary and capricious tariffs directly raised costs for all American consumers. Lower-income Americans can least afford them. Many voted for Democrats yesterday,” he said.

“Tariffs should be a central part, but only part, of the ‘honest conversation’ (Vice President JD) Vance wants Republicans to have about the future of our party.

“For instance, we all seem to oppose government-owned grocery stores. But are we ok with government ownership of semiconductor companies and rare earth miners?

“We oppose rent controls. But do we support price controls on medicines and credit cards?

“The bigger question is does the Republican party now agree with the left that we need a large, powerful central government to run the economy, allocate capital and control prices?”

The Associated Press’ exit poll showed voters in every state expressing sentiments that the trade tariffs had harmed their local economies more than they had helped.

Mitt Romney, former Republican Governor of Utah, also hit out at “erratic tariffs” as a reason for the GOP’s shellacking.

“Bad policy, bad characters make bad politics: erratic tariffs, impulsive Iran war, blanket pardons, apparent corruption, weaponised justice, ICE brutality, mountainous deficits, hiding Epstein, abandoning allies and coddling enemies,” he said.

“Hoping for a course correction, for the country and for my party.”

John Curtis, Republican Senator for Utah, said it was time for Republicans to reject tariffs and return to their roots.

“It’s time for Republicans to return to the principled conservative values that once defined us — and that we’ve steadily abandoned over the last decade,” he said.

“I can’t reconcile these things with the conservative principles that brought me into public service. And I don’t think we should try.”