The verdict is in: Australia will not be granted an exemption from US tariffs on steel and aluminium, despite hopes President Trump would look favourably on one of its most loyal allies and grant us one.

The news was greeted with dismay in Canberra, with the Prime Minister saying the decision the government giving a somewhat muted response, and the Opposition blaming it on the government.

So what does this mean for our relationship with our closest ally? Will the US impose more tariffs on us in the future? Did the government cock up the handling of this delicate diplomatic issue?

Plus we will delve into the strange case of the caravan-full of explosives and the fake terror plot. With both sides of politics accusing the other of weaponising this incident, who is in the right?