As Australia’s steel and aluminium industry grapples with the potential impact of new U.S. tariffs, Prime Minister Anthony Albanese says he is due to speak with U.S. President Donald Trump.
President Trump announced sweeping 25 percent tariffs on steel and aluminium imports on Feb. 10, affecting about $900 million worth of Australian goods.
Trump confirmed the new duties would apply to all steel and aluminium imports.
The countries likely to feel the largest impact include top exporters such as Canada, Brazil, Mexico, South Korea, Japan (for steel), and Canada, China, Mexico, UAE, India, and Bahrain (for aluminium).
“This government has a strong record of working with other nations to protect and advance Australia’s trade interests. We will navigate any differences diplomatically and continue to make the case to the United States for Australia to be given an exemption,” Albanese said in Australia’s federal Parliament during Question Time on Feb. 10.
Albanese Fronts Question Time on Tariffs
Albanese said his government would continue pushing for an exemption.
“We regard this as also being in the U.S. national interest. Tariffs don’t tax us; they tax the purchasers of our products. The U.S. has had a trade surplus with Australia since the Trump presidency.”
Shadow Minister for Trade Kevin Hogan continued pressing Albanese on the steps Australia’s Ambassador to the U.S. Kevin Rudd had taken to secure an exemption.
Albanese responded, saying, “Ambassador Rudd has met with President Trump. Our defence minister met with the U.S. defence minister over the weekend, and our foreign minister was one of the few international representatives invited to the inauguration.
“We will continue to engage diplomatically, not with loud hailers, but through diplomacy. That is how we have got things done in our relationships worldwide.”
He noted that the government had already raised the issue in ministerial discussions, emphasising that Australian steel and aluminium were vital to U.S. supply chains.
“Indeed, just this morning, I met with the global CEO of Rio Tinto. Australian companies have major investments in the U.S. steel industry, supporting thousands of jobs in both countries.”
Shares in Australian steelmaker BlueScope rose in response to the tariff announcement. The company has major operations in the US.
Trade Minister Don Farrell has been leading efforts to persuade US officials to reconsider, arguing that the tariffs are unjustified given the U.S. trade surplus with Australia.
“The U.S. is Australia’s largest economic partner, with $1.17 trillion of inward foreign investment,” Farrell told Sky News.
He also noted Australia’s role as a key strategic ally under the AUKUS security pact, citing Australia’s recent US$500 million investment in the U.S. submarine industry. However, he acknowledged that discussions were complicated by the fact that Trump’s trade representative had yet to be confirmed.
“We’ve indicated we are very keen to talk,” Farrell said, confirming he had reached out to Howard Lutnick, Trump’s nominee for Commerce Secretary.
“Until you get approved by the Senate, you’re not in a position to discuss with other countries, but we’ve made it clear that we want to engage as soon as possible.”
