Warren Buffett has set alarm bells ringing on Wall Street
Citigroup's profits jumped by 25 per cent, beating analysts' expectations. The KBW Nasdaq Bank Index is close to an all-time high.
But not everyone is convinced that the good times are going to last.
Warren Buffett, the so-called Sage of Omaha, has been shedding his US bank holdings. At the start of the year, Buffett's Berkshire Hathaway sold about $US3.2 billion ($4.9 billion) of shares in American banks and financial companies.
Buffett sold about a $US1 billion stake in Citigroup, ditched shares worth more than $US2 billion in Bank of America and dropped some of its holdings in Capital One.
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'Berkshire has clearly been reducing its exposure to US bank stocks,' Larry Cunningham, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, says.
'That activity signals a cautious or even bearish outlook on banking.'
Moves of this size are not unusual for Berkshire Hathaway. But Buffett, arguably the most successful investor of all time, has a reputation for being preternaturally gifted at foreseeing market trends.
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West Australian
6 minutes ago
- West Australian
Donald Trump news: US President speaks as he arrives in Scotland to open new golf course, discuss trade
US President Donald Trump has arrived in Scotland as his family's business prepares for the upcoming opening of a new golf course in Aberdeenshire billed as 'the greatest 36 holes in golf'. Air Force One - the presidential plane - touched down at Prestwick Airport in Ayrshire on Friday just before 8.30pm (local time). Mr Trump was met by Scottish Secretary Ian Murray as he disembarked, before heading to the waiting presidential helicopter Marine One, bound for his nearby Turnberry golf course. His presence is expected to spark protests across the country, with Scottish Police being forced to request aid from other forces to help increase manpower for the trip. Mr Trump is set to spend time at his golf resort in Turnberry on Scotland's west coast, before heading to his sprawling golf property 320 kilometres away near Aberdeen in the east. But it won't be all play and no work. He will meet British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen who both want to talk about trade. Mr Trump said Washington was also working hard on a possible trade deal with the EU, which he said was very keen to make a deal. EU diplomats say a deal could result in a broad 15 per cent tariff on EU goods, mirroring a framework agreement with Japan and half of the 30 per cent tariff Trump is threatening to impose by August 1. Speaking to reporters on the tarmac, Mr Trump said he'd be with his son and 'he's gonna cut a ribbon' for the second Trump golf course opening soon near Aberdeen. Eric Trump, who now helps run the Trump Organisation, previously joined his father for the groundbreaking in 2023. Although Eric did not travel with Donald on Air Force One, a Trump private plane was seen landing near Glasgow earlier in the day. Mr Trump also used the opportunity to send a blunt message to Europe, saying, 'This immigration is killing Europe. And the other thing, stop the windmills.' He added: 'Wind power generation is killing the beauty of your country.' His opposition to wind farms is longstanding, including previous legal efforts to protect views from his golf courses in Scotland. On immigration, Mr Trump warned, 'On immigration, you better get your act together. You're not going to have Europe anymore.' He contrasted this with his administration's tough US-Mexico border policies, suggesting Europe needs to act decisively on immigration controls. As part of the visit, he will open a second 18-hole course on the Aberdeen property named in honour of his mother, Mary Anne MacLeod, who was born and raised on a Scottish island before emigrating to America. The White House has described the trip as 'private'. Mr Trump's visit to Scotland is in the 'public interest', UK Chancellor Rachel Reeves insisted, pointing out a recent trade deal. 'That has a tangible benefit for people here in Scotland, whether it is people working in the Scotch whisky industry or people working in the defence sector, like here at Rolls-Royce, that trade deal means lower tariffs than any country in the world on things that we send to the US,' she said. While in the UK, he will also meet Scotland's First Minister John Swinney, who had publicly backed Democratic candidate Kamala Harris in the 2024 US presidential election. 'The Scottish leader is a good man, so I look forward to meeting him,' Mr Trump said. Swinney flagged in an interview with PA that he intended to raise 'the awfulness of the situation in Gaza and the unbearable human suffering' with Trump. 'I intend to take that opportunity to make sure that Scotland's voice is heard,' he said. The trip shows how the president has become increasingly comfortable intermingling his governing pursuits with promoting his family's business interests. Mr Trump has described Scotland as a 'very special place' and made a similar trip there in 2016 during his first run for the presidency, but he will not necessarily get a warm welcome. About 70 per cent of Scots have an unfavourable opinion of Trump, while 18 per cent have a favourable opinion, an Ipsos poll in March found. His visit requires a major police operation that will cost Scottish taxpayers millions of pounds as protests are planned over the weekend. The union representing officers is concerned that they are already overworked and will be diverted from their normal duties. The overseas travel comes as Trump faces the biggest domestic political crisis of his second term in office. Allies and opponents alike have criticised his administration's handling of investigative files related to disgraced financier and sex offender Jeffrey Epstein's criminal charges and the circumstances of his 2019 death in prison. The issue has caused a rare breach with some of Trump's most loyal Make America Great Again supporters, and majorities of Americans and Trump's Republicans say they believe the government is hiding details on the case, according to Reuters/Ipsos polling. White House officials, frustrated by the ongoing focus on the Epstein saga, are hoping the controversy dies down while Trump is abroad, one person familiar with the matter said. with PA and Reuters
Perth Now
6 minutes ago
- Perth Now
‘Better get your act together': Trump arrives in Scotland
US President Donald Trump has arrived in Scotland as his family's business prepares for the upcoming opening of a new golf course in Aberdeenshire billed as 'the greatest 36 holes in golf'. Air Force One - the presidential plane - touched down at Prestwick Airport in Ayrshire on Friday just before 8.30pm (local time). Mr Trump was met by Scottish Secretary Ian Murray as he disembarked, before heading to the waiting presidential helicopter Marine One, bound for his nearby Turnberry golf course. His presence is expected to spark protests across the country, with Scottish Police being forced to request aid from other forces to help increase manpower for the trip. Mr Trump is set to spend time at his golf resort in Turnberry on Scotland's west coast, before heading to his sprawling golf property 320 kilometres away near Aberdeen in the east. But it won't be all play and no work. He will meet British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen who both want to talk about trade. Mr Trump said Washington was also working hard on a possible trade deal with the EU, which he said was very keen to make a deal. EU diplomats say a deal could result in a broad 15 per cent tariff on EU goods, mirroring a framework agreement with Japan and half of the 30 per cent tariff Trump is threatening to impose by August 1. Speaking to reporters on the tarmac, Mr Trump said he'd be with his son and 'he's gonna cut a ribbon' for the second Trump golf course opening soon near Aberdeen. Eric Trump, who now helps run the Trump Organisation, previously joined his father for the groundbreaking in 2023. Although Eric did not travel with Donald on Air Force One, a Trump private plane was seen landing near Glasgow earlier in the day. Mr Trump also used the opportunity to send a blunt message to Europe, saying, 'This immigration is killing Europe. And the other thing, stop the windmills.' He added: 'Wind power generation is killing the beauty of your country.' His opposition to wind farms is longstanding, including previous legal efforts to protect views from his golf courses in Scotland. On immigration, Mr Trump warned, 'On immigration, you better get your act together. You're not going to have Europe anymore.' He contrasted this with his administration's tough US-Mexico border policies, suggesting Europe needs to act decisively on immigration controls. As part of the visit, he will open a second 18-hole course on the Aberdeen property named in honour of his mother, Mary Anne MacLeod, who was born and raised on a Scottish island before emigrating to America. The White House has described the trip as 'private'. Mr Trump's visit to Scotland is in the 'public interest', UK Chancellor Rachel Reeves insisted, pointing out a recent trade deal. 'That has a tangible benefit for people here in Scotland, whether it is people working in the Scotch whisky industry or people working in the defence sector, like here at Rolls-Royce, that trade deal means lower tariffs than any country in the world on things that we send to the US,' she said. While in the UK, he will also meet Scotland's First Minister John Swinney, who had publicly backed Democratic candidate Kamala Harris in the 2024 US presidential election. 'The Scottish leader is a good man, so I look forward to meeting him,' Mr Trump said. Swinney flagged in an interview with PA that he intended to raise 'the awfulness of the situation in Gaza and the unbearable human suffering' with Trump. 'I intend to take that opportunity to make sure that Scotland's voice is heard,' he said. The trip shows how the president has become increasingly comfortable intermingling his governing pursuits with promoting his family's business interests. Mr Trump has described Scotland as a 'very special place' and made a similar trip there in 2016 during his first run for the presidency, but he will not necessarily get a warm welcome. About 70 per cent of Scots have an unfavourable opinion of Trump, while 18 per cent have a favourable opinion, an Ipsos poll in March found. His visit requires a major police operation that will cost Scottish taxpayers millions of pounds as protests are planned over the weekend. The union representing officers is concerned that they are already overworked and will be diverted from their normal duties. The overseas travel comes as Trump faces the biggest domestic political crisis of his second term in office. Allies and opponents alike have criticised his administration's handling of investigative files related to disgraced financier and sex offender Jeffrey Epstein's criminal charges and the circumstances of his 2019 death in prison. The issue has caused a rare breach with some of Trump's most loyal Make America Great Again supporters, and majorities of Americans and Trump's Republicans say they believe the government is hiding details on the case, according to Reuters/Ipsos polling. White House officials, frustrated by the ongoing focus on the Epstein saga, are hoping the controversy dies down while Trump is abroad, one person familiar with the matter said. with PA and Reuters
The Advertiser
an hour ago
- The Advertiser
Trump has put USA back on top. Australia should follow his lead
Putting aside all of Donald Trump's personal character flaws, and his contentious international and domestic policy decisions, he has kept his pledge to the "forgotten Americans," or as Hillary Clinton referred to them, the "deplorables" who voted for him. In his first 180 days, he has restored America's position as the dominant superpower and advocate of the free world. Beginning on day one of his administration, President Trump has been laser focused on promoting and ensuring stability, predictability, and flexibility to the American people. He has done precisely what he said he would do during his campaign: stabilise the US/Mexican border, reforge US economic prominence, lower personal taxes, improve government efficiencies, and attempt to distance the US from the global geopolitical entanglements he inherited from President Biden. The One Big Beautiful Bill was the crescendo of what he and the MAGA base set out to accomplish when he took office. It is now the law of the land. More significantly, the bill signifies the passing of the Republican party mantle, undisputedly, from Ronald Reagan to Donald Trump and the MAGAs. The 1981 Economic Recovery Tax Act was the cornerstone of Reaganomics and the US's defence posture for generations. Trump's bill is America's new foundation for delivering long-term changes, which the White House says will "unleash robust economic growth, restore fiscal sanity, and reestablish America's economic and military might globally." Frustratingly, an unwelcome reality, despite some real economic and national security positives, is the US is still vulnerable to dangerous fiscal fluctuations. The bill doesn't reduce the US's national debt. It doesn't improve the US's unreliable defence acquisition infrastructures. Nor, does it unshackle the US from the conflicts in Ukraine or Gaza. Regardless, Trump and the MAGAs see the bill as the catalyst for the US's restoration as the world's preeminent industrial power. As such, US manufacturing and investments, within the dogma of industrial power, will be directed towards the established military-industrial complexes. These have been the engine of trade, innovation, and prosperity in the US since World War II. Industrial power is built on good policies and trade relationships. It's formulated by assessing a nation's security requirements based on the threat's capabilities and their industrial might. That is why the US's planning and policy processes, logically, will look to the US's national security strategy to guide trade negotiations, defence planning and budgeting. Described by many, including Australian politicians, as being unpredictable, President Trump is astonishingly predictable on industrial and national security matters. He has strong convictions, some of them stretching back decades, which makes envisaging what we can expect for the rest of his presidency rather calculated. Donald Trump believes peace is built on industrial and military strength. He believes the only reliable way to secure industrial power and prevent aggression is by threatening rivals with unacceptable industrial - tariffs - or military consequences. That requires the US to have a financial and defence posture second to none. A sizeable portion of the bill restores lost capabilities within the US industrial base. To the MAGAs, the loss of key industrial capabilities to foreign entities is more compelling than having a defence force structure that is too small. READ MORE: The belief is, if you can't equip your forces to deter opponents and achieve victory then you place your service members in peril, you become a strategic liability to your allies, and you are destined to lose the first battle if not the war. Trump has little faith in alliances and defence agreements like AUKUS, however, he accepts them as a reality of global geopolitical security. He, as well as others in his administration, have complained for decades that countries like Australia, the UK, Japan, and NATO members don't spend enough on their own defence. He has argued that Japan and South Korea need to acquire nuclear forces to deter attacks and if they don't - they should pay America for defending them. A condition he might cogitate for Australia too. Trump and the MAGAs see China as the only credible superpower to America. Although China's global economic power is wanning, its steady modernisation of the People's Liberation Army, coupled with China's subversive global activities, especially in the Timor and Coral Sea regions, make China the central industrial and military threat in all US planning scenarios and operational contingency plans. In Trump's first term, his administration released a drastically revised national security strategy that shifted the US's focus from the global war on terror to great-power competition. Then, US defence secretary Pat Shanahan described the focus of the new strategy as "China, China, China." In that respect, Trump's views, along with key advisers JD Vance and Bridge Colby, remain unchanged, if not more ardent. Specifically as it pertains to Taiwan, the principal lesson Trump has learned from the US's involvement in Iraq and Afghanistan is that tech is better than boots on the ground. In those circumstances where foreign provocations demand a US military response, Trump will habitually favour the use of remote weapons, as seen by US strikes into Iran, Yemen, Africa and the Red Sea. During his first term, Trump used armed drones more than any of his predecessors. Trump and his fellow MAGAs recognise that the death or capture of a single service member by a hostile force is always a divisive development in US domestic politics. He is determined to avoid such incidents, which leaves the defence of Taiwan in a perilous predicament. The last thing Donald Trump and his MAGA base want to see are US soldiers or marines in firefights with Chinese forces in Taiwan. MAGA disciples such as JD Vance, Marco Rubio and Kristi Noem are Trump's champions of industrial power. Like Reaganomics, which served the Republican party for 45 years, this cohort will be the guardians of the big beautiful bill for years to come. The MAGAs realise that "business as usual" with respect to national security posturing is no longer sufficient by military might alone. It's a realisation that through industrial power, both government and the private sector must determine together how to best proceed in building and sustaining national security capabilities with its foundation being "made in America." Industrial power requires a nation to make strategic public investments designed to strengthen its economic and national security posture. Such investments must be broader in scope than the traditional defence industries. This requires governments to ensure effective production and supply chains exist for goods and manufacturing that serve the needs of the whole economy - not just the defence industrial base. It must be an expanded aperture that strengthens not only a nation's security but collectively strengthens the livelihood of each citizen. Although some in Australia believe America's resolve to its allies is suspect and its global popularity is declining, a national security strategy focused on industrial power that is aligned with the US will ultimately benefit all Australians. The US, under Trump and the MAGAs, is once again seen as the leader of a global alliance of more than 60 partner nations that collectively account for almost 80 per cent of the world's GDP. Australia should view these nations' industrial power as a global security system that supports our industries, our national security, and most of all - our citizens. There is a lesson here for Australia: "Made in Australia" is and always will be our most reliable national security deterrent. Putting aside all of Donald Trump's personal character flaws, and his contentious international and domestic policy decisions, he has kept his pledge to the "forgotten Americans," or as Hillary Clinton referred to them, the "deplorables" who voted for him. In his first 180 days, he has restored America's position as the dominant superpower and advocate of the free world. Beginning on day one of his administration, President Trump has been laser focused on promoting and ensuring stability, predictability, and flexibility to the American people. He has done precisely what he said he would do during his campaign: stabilise the US/Mexican border, reforge US economic prominence, lower personal taxes, improve government efficiencies, and attempt to distance the US from the global geopolitical entanglements he inherited from President Biden. The One Big Beautiful Bill was the crescendo of what he and the MAGA base set out to accomplish when he took office. It is now the law of the land. More significantly, the bill signifies the passing of the Republican party mantle, undisputedly, from Ronald Reagan to Donald Trump and the MAGAs. The 1981 Economic Recovery Tax Act was the cornerstone of Reaganomics and the US's defence posture for generations. Trump's bill is America's new foundation for delivering long-term changes, which the White House says will "unleash robust economic growth, restore fiscal sanity, and reestablish America's economic and military might globally." Frustratingly, an unwelcome reality, despite some real economic and national security positives, is the US is still vulnerable to dangerous fiscal fluctuations. The bill doesn't reduce the US's national debt. It doesn't improve the US's unreliable defence acquisition infrastructures. Nor, does it unshackle the US from the conflicts in Ukraine or Gaza. Regardless, Trump and the MAGAs see the bill as the catalyst for the US's restoration as the world's preeminent industrial power. As such, US manufacturing and investments, within the dogma of industrial power, will be directed towards the established military-industrial complexes. These have been the engine of trade, innovation, and prosperity in the US since World War II. Industrial power is built on good policies and trade relationships. It's formulated by assessing a nation's security requirements based on the threat's capabilities and their industrial might. That is why the US's planning and policy processes, logically, will look to the US's national security strategy to guide trade negotiations, defence planning and budgeting. Described by many, including Australian politicians, as being unpredictable, President Trump is astonishingly predictable on industrial and national security matters. He has strong convictions, some of them stretching back decades, which makes envisaging what we can expect for the rest of his presidency rather calculated. Donald Trump believes peace is built on industrial and military strength. He believes the only reliable way to secure industrial power and prevent aggression is by threatening rivals with unacceptable industrial - tariffs - or military consequences. That requires the US to have a financial and defence posture second to none. A sizeable portion of the bill restores lost capabilities within the US industrial base. To the MAGAs, the loss of key industrial capabilities to foreign entities is more compelling than having a defence force structure that is too small. READ MORE: The belief is, if you can't equip your forces to deter opponents and achieve victory then you place your service members in peril, you become a strategic liability to your allies, and you are destined to lose the first battle if not the war. Trump has little faith in alliances and defence agreements like AUKUS, however, he accepts them as a reality of global geopolitical security. He, as well as others in his administration, have complained for decades that countries like Australia, the UK, Japan, and NATO members don't spend enough on their own defence. He has argued that Japan and South Korea need to acquire nuclear forces to deter attacks and if they don't - they should pay America for defending them. A condition he might cogitate for Australia too. Trump and the MAGAs see China as the only credible superpower to America. Although China's global economic power is wanning, its steady modernisation of the People's Liberation Army, coupled with China's subversive global activities, especially in the Timor and Coral Sea regions, make China the central industrial and military threat in all US planning scenarios and operational contingency plans. In Trump's first term, his administration released a drastically revised national security strategy that shifted the US's focus from the global war on terror to great-power competition. Then, US defence secretary Pat Shanahan described the focus of the new strategy as "China, China, China." In that respect, Trump's views, along with key advisers JD Vance and Bridge Colby, remain unchanged, if not more ardent. Specifically as it pertains to Taiwan, the principal lesson Trump has learned from the US's involvement in Iraq and Afghanistan is that tech is better than boots on the ground. In those circumstances where foreign provocations demand a US military response, Trump will habitually favour the use of remote weapons, as seen by US strikes into Iran, Yemen, Africa and the Red Sea. During his first term, Trump used armed drones more than any of his predecessors. Trump and his fellow MAGAs recognise that the death or capture of a single service member by a hostile force is always a divisive development in US domestic politics. He is determined to avoid such incidents, which leaves the defence of Taiwan in a perilous predicament. The last thing Donald Trump and his MAGA base want to see are US soldiers or marines in firefights with Chinese forces in Taiwan. MAGA disciples such as JD Vance, Marco Rubio and Kristi Noem are Trump's champions of industrial power. Like Reaganomics, which served the Republican party for 45 years, this cohort will be the guardians of the big beautiful bill for years to come. The MAGAs realise that "business as usual" with respect to national security posturing is no longer sufficient by military might alone. It's a realisation that through industrial power, both government and the private sector must determine together how to best proceed in building and sustaining national security capabilities with its foundation being "made in America." Industrial power requires a nation to make strategic public investments designed to strengthen its economic and national security posture. Such investments must be broader in scope than the traditional defence industries. This requires governments to ensure effective production and supply chains exist for goods and manufacturing that serve the needs of the whole economy - not just the defence industrial base. It must be an expanded aperture that strengthens not only a nation's security but collectively strengthens the livelihood of each citizen. Although some in Australia believe America's resolve to its allies is suspect and its global popularity is declining, a national security strategy focused on industrial power that is aligned with the US will ultimately benefit all Australians. The US, under Trump and the MAGAs, is once again seen as the leader of a global alliance of more than 60 partner nations that collectively account for almost 80 per cent of the world's GDP. Australia should view these nations' industrial power as a global security system that supports our industries, our national security, and most of all - our citizens. There is a lesson here for Australia: "Made in Australia" is and always will be our most reliable national security deterrent. Putting aside all of Donald Trump's personal character flaws, and his contentious international and domestic policy decisions, he has kept his pledge to the "forgotten Americans," or as Hillary Clinton referred to them, the "deplorables" who voted for him. In his first 180 days, he has restored America's position as the dominant superpower and advocate of the free world. Beginning on day one of his administration, President Trump has been laser focused on promoting and ensuring stability, predictability, and flexibility to the American people. He has done precisely what he said he would do during his campaign: stabilise the US/Mexican border, reforge US economic prominence, lower personal taxes, improve government efficiencies, and attempt to distance the US from the global geopolitical entanglements he inherited from President Biden. The One Big Beautiful Bill was the crescendo of what he and the MAGA base set out to accomplish when he took office. It is now the law of the land. More significantly, the bill signifies the passing of the Republican party mantle, undisputedly, from Ronald Reagan to Donald Trump and the MAGAs. The 1981 Economic Recovery Tax Act was the cornerstone of Reaganomics and the US's defence posture for generations. Trump's bill is America's new foundation for delivering long-term changes, which the White House says will "unleash robust economic growth, restore fiscal sanity, and reestablish America's economic and military might globally." Frustratingly, an unwelcome reality, despite some real economic and national security positives, is the US is still vulnerable to dangerous fiscal fluctuations. The bill doesn't reduce the US's national debt. It doesn't improve the US's unreliable defence acquisition infrastructures. Nor, does it unshackle the US from the conflicts in Ukraine or Gaza. Regardless, Trump and the MAGAs see the bill as the catalyst for the US's restoration as the world's preeminent industrial power. As such, US manufacturing and investments, within the dogma of industrial power, will be directed towards the established military-industrial complexes. These have been the engine of trade, innovation, and prosperity in the US since World War II. Industrial power is built on good policies and trade relationships. It's formulated by assessing a nation's security requirements based on the threat's capabilities and their industrial might. That is why the US's planning and policy processes, logically, will look to the US's national security strategy to guide trade negotiations, defence planning and budgeting. Described by many, including Australian politicians, as being unpredictable, President Trump is astonishingly predictable on industrial and national security matters. He has strong convictions, some of them stretching back decades, which makes envisaging what we can expect for the rest of his presidency rather calculated. Donald Trump believes peace is built on industrial and military strength. He believes the only reliable way to secure industrial power and prevent aggression is by threatening rivals with unacceptable industrial - tariffs - or military consequences. That requires the US to have a financial and defence posture second to none. A sizeable portion of the bill restores lost capabilities within the US industrial base. To the MAGAs, the loss of key industrial capabilities to foreign entities is more compelling than having a defence force structure that is too small. READ MORE: The belief is, if you can't equip your forces to deter opponents and achieve victory then you place your service members in peril, you become a strategic liability to your allies, and you are destined to lose the first battle if not the war. Trump has little faith in alliances and defence agreements like AUKUS, however, he accepts them as a reality of global geopolitical security. He, as well as others in his administration, have complained for decades that countries like Australia, the UK, Japan, and NATO members don't spend enough on their own defence. He has argued that Japan and South Korea need to acquire nuclear forces to deter attacks and if they don't - they should pay America for defending them. A condition he might cogitate for Australia too. Trump and the MAGAs see China as the only credible superpower to America. Although China's global economic power is wanning, its steady modernisation of the People's Liberation Army, coupled with China's subversive global activities, especially in the Timor and Coral Sea regions, make China the central industrial and military threat in all US planning scenarios and operational contingency plans. In Trump's first term, his administration released a drastically revised national security strategy that shifted the US's focus from the global war on terror to great-power competition. Then, US defence secretary Pat Shanahan described the focus of the new strategy as "China, China, China." In that respect, Trump's views, along with key advisers JD Vance and Bridge Colby, remain unchanged, if not more ardent. Specifically as it pertains to Taiwan, the principal lesson Trump has learned from the US's involvement in Iraq and Afghanistan is that tech is better than boots on the ground. In those circumstances where foreign provocations demand a US military response, Trump will habitually favour the use of remote weapons, as seen by US strikes into Iran, Yemen, Africa and the Red Sea. During his first term, Trump used armed drones more than any of his predecessors. Trump and his fellow MAGAs recognise that the death or capture of a single service member by a hostile force is always a divisive development in US domestic politics. He is determined to avoid such incidents, which leaves the defence of Taiwan in a perilous predicament. The last thing Donald Trump and his MAGA base want to see are US soldiers or marines in firefights with Chinese forces in Taiwan. MAGA disciples such as JD Vance, Marco Rubio and Kristi Noem are Trump's champions of industrial power. Like Reaganomics, which served the Republican party for 45 years, this cohort will be the guardians of the big beautiful bill for years to come. The MAGAs realise that "business as usual" with respect to national security posturing is no longer sufficient by military might alone. It's a realisation that through industrial power, both government and the private sector must determine together how to best proceed in building and sustaining national security capabilities with its foundation being "made in America." Industrial power requires a nation to make strategic public investments designed to strengthen its economic and national security posture. Such investments must be broader in scope than the traditional defence industries. This requires governments to ensure effective production and supply chains exist for goods and manufacturing that serve the needs of the whole economy - not just the defence industrial base. It must be an expanded aperture that strengthens not only a nation's security but collectively strengthens the livelihood of each citizen. Although some in Australia believe America's resolve to its allies is suspect and its global popularity is declining, a national security strategy focused on industrial power that is aligned with the US will ultimately benefit all Australians. The US, under Trump and the MAGAs, is once again seen as the leader of a global alliance of more than 60 partner nations that collectively account for almost 80 per cent of the world's GDP. Australia should view these nations' industrial power as a global security system that supports our industries, our national security, and most of all - our citizens. There is a lesson here for Australia: "Made in Australia" is and always will be our most reliable national security deterrent. Putting aside all of Donald Trump's personal character flaws, and his contentious international and domestic policy decisions, he has kept his pledge to the "forgotten Americans," or as Hillary Clinton referred to them, the "deplorables" who voted for him. In his first 180 days, he has restored America's position as the dominant superpower and advocate of the free world. Beginning on day one of his administration, President Trump has been laser focused on promoting and ensuring stability, predictability, and flexibility to the American people. He has done precisely what he said he would do during his campaign: stabilise the US/Mexican border, reforge US economic prominence, lower personal taxes, improve government efficiencies, and attempt to distance the US from the global geopolitical entanglements he inherited from President Biden. The One Big Beautiful Bill was the crescendo of what he and the MAGA base set out to accomplish when he took office. It is now the law of the land. More significantly, the bill signifies the passing of the Republican party mantle, undisputedly, from Ronald Reagan to Donald Trump and the MAGAs. The 1981 Economic Recovery Tax Act was the cornerstone of Reaganomics and the US's defence posture for generations. Trump's bill is America's new foundation for delivering long-term changes, which the White House says will "unleash robust economic growth, restore fiscal sanity, and reestablish America's economic and military might globally." Frustratingly, an unwelcome reality, despite some real economic and national security positives, is the US is still vulnerable to dangerous fiscal fluctuations. The bill doesn't reduce the US's national debt. It doesn't improve the US's unreliable defence acquisition infrastructures. Nor, does it unshackle the US from the conflicts in Ukraine or Gaza. Regardless, Trump and the MAGAs see the bill as the catalyst for the US's restoration as the world's preeminent industrial power. As such, US manufacturing and investments, within the dogma of industrial power, will be directed towards the established military-industrial complexes. These have been the engine of trade, innovation, and prosperity in the US since World War II. Industrial power is built on good policies and trade relationships. It's formulated by assessing a nation's security requirements based on the threat's capabilities and their industrial might. That is why the US's planning and policy processes, logically, will look to the US's national security strategy to guide trade negotiations, defence planning and budgeting. Described by many, including Australian politicians, as being unpredictable, President Trump is astonishingly predictable on industrial and national security matters. He has strong convictions, some of them stretching back decades, which makes envisaging what we can expect for the rest of his presidency rather calculated. Donald Trump believes peace is built on industrial and military strength. He believes the only reliable way to secure industrial power and prevent aggression is by threatening rivals with unacceptable industrial - tariffs - or military consequences. That requires the US to have a financial and defence posture second to none. A sizeable portion of the bill restores lost capabilities within the US industrial base. To the MAGAs, the loss of key industrial capabilities to foreign entities is more compelling than having a defence force structure that is too small. READ MORE: The belief is, if you can't equip your forces to deter opponents and achieve victory then you place your service members in peril, you become a strategic liability to your allies, and you are destined to lose the first battle if not the war. Trump has little faith in alliances and defence agreements like AUKUS, however, he accepts them as a reality of global geopolitical security. He, as well as others in his administration, have complained for decades that countries like Australia, the UK, Japan, and NATO members don't spend enough on their own defence. He has argued that Japan and South Korea need to acquire nuclear forces to deter attacks and if they don't - they should pay America for defending them. A condition he might cogitate for Australia too. Trump and the MAGAs see China as the only credible superpower to America. Although China's global economic power is wanning, its steady modernisation of the People's Liberation Army, coupled with China's subversive global activities, especially in the Timor and Coral Sea regions, make China the central industrial and military threat in all US planning scenarios and operational contingency plans. In Trump's first term, his administration released a drastically revised national security strategy that shifted the US's focus from the global war on terror to great-power competition. Then, US defence secretary Pat Shanahan described the focus of the new strategy as "China, China, China." In that respect, Trump's views, along with key advisers JD Vance and Bridge Colby, remain unchanged, if not more ardent. Specifically as it pertains to Taiwan, the principal lesson Trump has learned from the US's involvement in Iraq and Afghanistan is that tech is better than boots on the ground. In those circumstances where foreign provocations demand a US military response, Trump will habitually favour the use of remote weapons, as seen by US strikes into Iran, Yemen, Africa and the Red Sea. During his first term, Trump used armed drones more than any of his predecessors. Trump and his fellow MAGAs recognise that the death or capture of a single service member by a hostile force is always a divisive development in US domestic politics. He is determined to avoid such incidents, which leaves the defence of Taiwan in a perilous predicament. The last thing Donald Trump and his MAGA base want to see are US soldiers or marines in firefights with Chinese forces in Taiwan. MAGA disciples such as JD Vance, Marco Rubio and Kristi Noem are Trump's champions of industrial power. Like Reaganomics, which served the Republican party for 45 years, this cohort will be the guardians of the big beautiful bill for years to come. The MAGAs realise that "business as usual" with respect to national security posturing is no longer sufficient by military might alone. It's a realisation that through industrial power, both government and the private sector must determine together how to best proceed in building and sustaining national security capabilities with its foundation being "made in America." Industrial power requires a nation to make strategic public investments designed to strengthen its economic and national security posture. Such investments must be broader in scope than the traditional defence industries. This requires governments to ensure effective production and supply chains exist for goods and manufacturing that serve the needs of the whole economy - not just the defence industrial base. It must be an expanded aperture that strengthens not only a nation's security but collectively strengthens the livelihood of each citizen. Although some in Australia believe America's resolve to its allies is suspect and its global popularity is declining, a national security strategy focused on industrial power that is aligned with the US will ultimately benefit all Australians. The US, under Trump and the MAGAs, is once again seen as the leader of a global alliance of more than 60 partner nations that collectively account for almost 80 per cent of the world's GDP. Australia should view these nations' industrial power as a global security system that supports our industries, our national security, and most of all - our citizens. There is a lesson here for Australia: "Made in Australia" is and always will be our most reliable national security deterrent.
