Government’s online laws on the backburner as it attempts to negotiate US tariff threats

The Greens have accused Labor of bowing before tech billionaires Elon Musk and Mark Zuckerberg in an attempt to keep Donald Trump on side, after the Government kicked online safety reforms into the long grass amid ongoing tariff uncertainty.

Treasurer Jim Chalmers on Tuesday left the door open to retaliating should the US President ignore the decades-long trade surplus and close bilateral relationship, and capture Australian steel, copper and aluminum in his tariff agenda.

Mr Trump on Tuesday announced a 30 day pause before the tariffs against Mexico and Canada, but his sector-based tariffs, which could also capture computer chips, pharmaceuticals, and oil and gas imports, could be imposed as soon as mid-February.

His 10 per cent tariffs on China are also going ahead, with Beijing to retaliate by imposing 15 per cent taxes on US goods, which will also have an economic effect on Australia.

Australia avoided steel and aluminnum tariffs during the last Trump presidency, and Dr Chalmers said the Government was confident it could “navigate” the policies this time around, but left his options open when asked if Canberra would retaliate with tariffs of its own.

“I don’t want to pre-empt that. That’s not our preference and that’s not something we’re considering or contemplating,” he said.

“We did a heap of work before the election to look at the possible consequences of trade tension and that has helped inform our approach.”

Dr Chalmers met with now-US Treasury Secretary before the November election, while Defence Minister Richard Marles will head to Washington this week to meet with his counterpart in a further attempt to shore up the new-look relationship. Trade Minister Don Farrell is awaiting his counterpart Howard Lutnick’s confirmation before the pair can officially speak.

“All of those conversations, all of that access, I think does augur well for our ability to make our case to American friends and counterparts about this mutually beneficial economic relationship. All of our efforts are about making sure that a mutually beneficial economic relationship between two countries continues to be just that,” Dr Chalmers said.

“Our economic relationship is very different to the American economic relationship with Canada or Mexico or China or the countries that have been President Trump’s focus. We have had opportunities to put that view, and we’ll have more opportunities in the future to put that view.”

As Labor attempts to cement an exemption, the Greens have accused the Government of backing down on tough tech regulations to keep Mr Trump on side via his right-hand-man Mr Musk, and Mr Zuckerberg.

The claim came as Communications Minister Michelle Rowland tabled the Online Safety Act review, undertaken by top public servant Delia Rickard, in Parliament on Tuesday – but has not yet revealed the Government’s official response to the report’s 67 recommendations.

Chief among them, the likes of Meta, Apple and Google would be threatened with billions of dollars of fines if they breach a new “duty of care” enforced by the eSafety commissioner, requiring them to be proactive about preventing child exploitation, online hate and content promoting substance abuse or eating disorders.

The Government has previously committed to legislating a Duty of Care, but it appears unlikely that will occur before the election with consultation with industry and community still ongoing.

Another recommendation was for companies to face fines of the larger of $50 million or five per cent of global turnover. The Government legislated $50 million fines along with its ban on children using social media but it yet to decide if it will add the percentage approach.

The Greens have urged the Government “not to go weak in the face of Elon Musk, Donald Trump and Mark Zuckerberg”.

“We are seeing the tech bros in the US calling the shots when it comes to policy, billionaires making up policy as they see fit, at the expense of public health and community safety. We cannot afford to allow that to happen here,” communications spokeswoman Sarah Hanson-Young said.

“They are bullies, and you don’t respond to bullies by being weak … You come out, you confront them, and you take them on.”

The Government is expected to say more about the review’s recommendations soon.

When the Greens’ suggestion was put to the minister, a spokesperson for Ms Rowland said the Government was committed to keeping Australians, particularly young people, safe online.

“While the Government continues to work through the full list of 67 recommendations, we have already taksen forward key recommendations from the review, including legislating increased penalties for breaches of the Online Safety Act from less than $1 million to nearly $50 million,” they said, also pointing to the social media ban for under 16s.