Published: 21:21, February 26, 2025
Australia to review Trump aid cuts’ impact on Pacific region
By Bloomberg

Australia's Foreign Minister Penny Wong arrives ahead of the G20 Foreign Minister Meeting at the Nasrec Expo Centre in Johannesburg on Feb 20, 2025. (PHOTO / AFP)

Australia plans to review the fallout on Southeast Asia and the Pacific of President Donald Trump’s planned cuts to USAID as Canberra’s latest foreign policy assessment warned of an “increasingly unpredictable” global strategic outlook.

While the Trump administration’s push to scale back USAID is still playing out in Washington, Australia will examine what potential shortfalls that might emerge as a result of the changes to America’s foreign aid agency, according to government officials who were not authorized to speak on the record.

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The move comes as a foreign policy document released by Foreign Minister Penny Wong on Wednesday evening said the “foundations of the modern world” are being tested, with generational diplomatic settings becoming “less and less reliable” in a world of more frequent strategic surprises.

“As the world becomes increasingly unpredictable, new issues and challenges will demand calm and considered engagement with a view to Australia’s longterm interests,” the 2025 Foreign Policy Snapshot said.

READ MORE: USAID dissolution heralds a pivotal shift in US global influence mechanism

Australia is one of a number of US allies working to adjust its foreign policy settings as Trump discards traditional US approaches in favor of more transactional interactions. Shortly after taking office, the president ordered a 90-day pause on all foreign aid funding until a review could take place.

Australia has not committed on whether it would move to plug any funding gaps that emerge in the region as a result of the Trump administration’s decisions on US foreign aid.