US tariff decision to loom large over election campaign

Prime Minister Anthony Albanese said Australia could continue to rely on the US president and the American alliance despite the possibility of further tariffs being imposed.

"We regard the United States as a friend and partner, and we have been able to rely on them for a long period," he told ABC's Insiders program.

"I've had two constructive discussions with President Trump, and I'll continue to engage constructively."

The announcement of the tariff expansion on Wednesday has been touted as "Liberation Day" by Mr Trump, with fears Australia could be affected.

Tariffs of 25 per cent have been imposed on steel and aluminium, but concerns have been raised other industries such as agriculture and pharmaceuticals - two of the largest US exports - will be hit next.

Opposition Leader Peter Dutton said he remained confident of the relationship between Australia and the US.

Despite previous criticism of Australian ambassador and former prime minister Kevin Rudd, Mr Dutton said the coalition would not change the diplomatic role.

"I want Kevin Rudd to succeed because our country will succeed and I will appoint Mr Rudd as the ambassador," Mr Dutton said.

"When we were in government we were able to negotiate the AUKUS arrangement as a coalition government with a Democrat administration."

Despite the US president urging countries such as Australia to increase defence spending, Mr Albanese said funding for the area was being bolstered.

"We are investing in the assets that we need now, some of them coming online. You can't make a decision one year and then launch the ship the next year," he said.

"We have a plan to use defence manufacturing as well to build up our capability in other areas."

The prime minister will spend day three of the election campaign in Western Australia, hoping Labor will be able to consolidate ground in the state that helped him to victory in 2022.

Mr Albanese is set to unveil a $355 million upgrade to a Perth hospital, in what is expected to be one of several health-related announcements in the state.

Mr Dutton spent Sunday hitting the hustings in western Sydney, with the coalition needing to flip several mortgage-belt seats in outer-suburban areas to form government.