Australia news LIVE: US pauses military aid to Ukraine; Cyclone Alfred puts Queensland, NSW on high-alert

US ambassador Kevin Rudd has given an upbeat view of the US-Australia alliance despite the upheaval of Donald Trump’s presidency, as he predicted the AUKUS pact would soon create a defence industry boom in cities around Australia.

Speaking at an Australian National University (ANU) webinar on Tuesday morning, Rudd said that Australia brings “enormous assets” to the table beyond its shared values and close history with the United States.

Pointing to the significant investment in the US by Australian superannuation funds, he said: “So we’re not just a nice bunch of people, we’re not just a loyal ally.

“We’re not just got an interesting bunch of rocks, but we do have an interesting bunch of rocks, critical minerals and non-critical minerals. And we are the biggest mining company in the world, which also commands respect here. We are now a phenomenal source of private capital.”

Asked by ANU international security professor John Blaxland how he responded to “catastrophising” about the state of the alliance under Trump, Rudd said: “The beginning of wisdom and international relations is to be very clear about our own values, be very clear about our own national interests. Be very clear about our partnerships around the world in the company and the countries we choose to work with. Be very clear about our strategy for navigating those interests and values in the world. It will never go perfectly smoothly. Life’s not like that. Politics is not like that.”

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Rudd pointed out that US Secretary of State Marco Rubio’s held a meeting of foreign ministers from the Quad nations – Australia, India, Japan and the US – on his first day in the job and that Trump’s Defence Secretary Pete Hesgeth had strongly endorsed the AUKUS defence partnership.

Trump, however, did not appear to know what AUKUS referred to when questioned about it last week by a British reporter.

Rudd said there was huge potential for the so-called pillar II of AUKUS, which covers collaboration on advanced military technologies such as hypersonic weapons and electronic warfare.

“If I was to make a prediction, in a year’s time you’re going to see AUKUS pillar II new projects, new businesses, new technologies, new platforms cropping up in every city and provincial centre across Australia because the opportunities for investment will be so large and the demand so acute,” he said.