Australian Treasurer Keeps up Aluminium, Steel Tariff Fight While US Noncommittal on Exemption

Chalmers met with US Treasury Secretary Scott Bessent and NEC Director Kevin Hassett, but the final decision rests with President Trump.

Federal Labor Treasurer Jim Chalmers speaks to the media during a press conference at the Commonwealth Parliamentary Offices in Brisbane, Australia on Sept. 25, 2024. AAP Image/Darren England

Treasurer Jim Chalmers, fresh from his visit to Washington, has confirmed that discussions on securing an exemption for Australia from the 25 percent tariffs on steel and aluminium remain ongoing but unresolved.

The tariffs, announced by U.S. President Donald Trump on Feb. 10, could impact approximately $900 million (US$560 million) worth of Australian exports.

“We were able to continue, but not conclude, the important discussions President Donald Trump and Prime Minister Anthony Albanese had around two weeks ago on steel and aluminium,” Chalmers said in an opinion piece published in The Australian on Feb. 28.

He met with U.S. Treasury Secretary Scott Bessent and National Economic Council Director Kevin Hassett to argue that an exemption would benefit industries and workers in both nations.

Strengthening Economic Ties Through Investment

Chalmers also used the visit to highlight broader economic opportunities between Australia and the United States. He pointed to the substantial role of Australian super funds, which manage about $1.5 trillion, and the combined market capitalisation of U.S. firms represented at the meetings, which totals nearly $3 trillion.

“While most of Australians’ super is invested domestically, we have a lot to offer by way of investment in American industry and we have a lot to gain by way of bigger and better returns for Australians through this diversification,” Chalmers said.

He held discussions with business leaders, including Blackstone CEO Stephen Schwarzman, Citigroup CEO Jane Fraser, and JPMorgan CEO Jamie Dimon.

According to Chalmers, they all “recognised the mutual benefits” of greater investment between the two nations.

Governors and congressional representatives from key U.S. states, including California, Illinois, Florida, Tennessee, and Connecticut, accounting for over a quarter of U.S. GDP, were amongst those who attended the summit.

Labor Defends Its US Engagement Strategy

Recently in an interview, Dutton criticised the Labor government’s approach to Trump, arguing Deputy Prime Minister Richard Marles’ U.S. talks showed more effort was needed.

He questioned Marles’ influence, claiming he is “batting fairly significantly down the list” among key government figures.

He further suggested that Albanese’s remark from 2017 about being “scared” of Trump might have offended the president.

However, Chalmers said that his meetings with top U.S. officials and business leaders reflect Australia’s continued strong access in Washington.

“This meeting, among the first the secretary and director have taken with counterparts since being sworn in, augurs well for the kind of access Australia has in Washington D.C. since the inauguration of President Trump,” he said.

Chalmers stressed that the U.S.-Australia relationship is built on deep trust and long-term strategic and economic ties.

“We’ll continue to work with the new administration to get stronger returns for middle Australia through stronger ties with middle America. By investing in each other’s successes, we will build a better future for Australians and Americans,” he concluded.

Prime Minister’s Direct Appeal

Albanese reached out to Trump earlier this month to advocate for the exemption. Following their call, Albanese confirmed that Trump had agreed to “consider” the request.

“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 during Question Time in Parliament on Feb. 10.

According to United Nations COMTRADE data, Australian iron and steel exports to the United States are valued at approximately $378 million (US$237 million), while aluminium exports amount to around $503 million.

“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,” Albanese said.