Australia is considering a strategic rapprochement with the EU after US tariffs affected exports and accelerated trade diversification

Australia is considering deepening relations with the European Union, as tariffs imposed by the United States have affected Australian exports. Trade Minister Don Farrell said that the government in Canberra is on the same wavelength as the Canadian authorities and is closely monitoring the strategy of Canada's Prime Minister, Mark Carney.

Farrell did not specify whether Australia is already negotiating a new form of cooperation with the EU, nor what structure a potential partnership might have. However, the official indicated that Australia is open to several options, against the backdrop of an increasingly divided global economy between protectionist states and supporters of free trade.

Australia's interest comes as Canada discusses a special relationship with Brussels that could go beyond traditional trade cooperation. The negotiations concern expanded access for goods, services, and workers in sectors such as artificial intelligence, energy, defense, and critical minerals. Joint projects involving data centers, cloud services, satellites, and energy infrastructure are also being considered. Carney has ruled out Canada joining the EU, proposing instead a “unique alliance.”

For the European Union, closer ties with Australia are important because of its reserves of critical raw materials.

Economic relations were strengthened in March through the signing of a free trade agreement negotiated over eight years, which eliminates tariffs on nearly all goods.