Amazon mega deal underscores economic relationship | Australian Markets

Amazon’s $20bn investment into Australian knowledge centre infrastructure underscores the economic relationship with the US forward of Anthony Albanese’s first face-to-face with Donald Trump, Labor’s industry tsar says.

The Prime Minister introduced the mega deal with Amazon on the tech giant’s headquarters in Seattle in a single day.

Speaking to media, Mr Albanese additionally mentioned he and the US President had “scheduled” a assembly on the sidelines of the G7 in Canada after Mr Trump confirmed he would attend the summit.

Pressure has been mounting on Mr Albanese to secure a carve out from sweeping US tariffs and shore up Washington’s assist for AUKUS after the Trump administration launched a review of the $368bn defence pact.

Industry and Innovation Minister Tim Ayres mentioned on Sunday the deal was “not designed” to ship a message to Mr Trump however that “it certainly does underscore the depth of the economic and strategic and technological relationship” with the US.

“It’s not just about trading in goods and services,” Senator Ayres advised Sky News.

“It’s about collaboration around science and research and development and in industrial terms.”

He singled out AUKUS as “offering opportunities for Australian and United States firms … to invest in each other’s economy”, highlighting it as “a real counterpoint to the position that the United States has adopted around tariff announcements”.

“They are not the act of a friend, as has been said repeatedly by me and my colleagues,” Senator Ayres mentioned.

“They are not in Australia’s interest, but they’re not in the United States’ interest either.

“Australian steel, for example, exported to the United States, feeds into American supply chains and supports competitive industry that provides good jobs for American workers.

“Why on Earth would anybody want to make Australian steel in the United States more expensive?

“That’s what the tariff measures do.”

He mentioned Mr Albanese could be placing that “position directly to the President of the United States” once they meet subsequent week.

“But the Amazon announcement does underscore how vital the direct economic relationship really is,” Senator Ayres mentioned.

At his Seattle press convention asserting the deal, Mr Albanese mentioned he would raise tariffs and AUKUS with Mr Trump.

Though he stopped short of saying the Amazon announcement was a message to the US chief.

“The US (Free Trade Agreement) has been important,” Mr Albanese advised reporters.

“It’s enjoyed bipartisan support in Australia and indeed in the United States.

“And so we welcome very much American investment in Australia.”

He added it was “important to recognise as well that the United States has a two for one surplus when it comes to the trading relationship in not just in goods, but in services as well”.

“And we want to grow the economic relationship between our two countries,” Mr Albanese mentioned.

“And I’m sure that when I have the opportunity to have discussions with President Trump, we will speak about the important economic relationship between our two countries, which is in the interests of both Australia and the United States.”

Under the deal, Amazon has dedicated to pumping money into developing knowledge centres in Melbourne and Sydney over the following 5 years, specializing in storage, networking, analytics, and secure companies supporting cloud and AI.

The firm will construct renewable vitality sources to assist its operations.

Speaking alongside Mr Albanese, Amazon Web Services chief govt Matt Garman dismissed considerations Australia’s grid lacked the facility needed for AI.

“I think definitely the explosion of AI requires a lot of power, so that’s one of the things we’re thinking about,” Mr Garman advised reporters.

“I think here in the United States, we see nuclear as part of that portfolio.

“Our investments in Australia are wind and solar, but I think depending on the local setup and economies and other things, it’s a global question, but there’s no question that we will continue to need more and more power going forward.”