Australian Treasurer in Washington Pushing for Exemption as US Tariff Decision Nears

Australian Treasurer Jim Chalmers speaks to the media during a press conference at Parliament House in Canberra, Australia on Nov. 21, 2024. AAP Image/Lukas Coch

In a renewed push for a tariff exemption ahead of Australia’s federal election, Treasurer Jim Chalmers has stepped up Canberra’s case with Washington.

Chalmers met with U.S. Treasury Secretary Scott Bessent and National Economic Council Director Kevin Hassett in Washington on Feb. 25 to discuss the impact of tariffs on Australian steel and aluminium exports.

The proposed 25 percent duties on steel and aluminium, announced by President Donald Trump on Feb. 10, could affect approximately $900 million (US$570 million) worth of Australian goods.

These measures are set to take effect by mid-March. Trump is expected to announce his decision in the coming weeks.

Following the meeting, Chalmers shared an update on social media, thanking Bessent and Hassett for a “really productive and positive meeting.”

He described the U.S.-Australia relationship as “strong and enduring” and expressed his intention to continue fostering economic ties between the two nations.

Australia’s Trade Argument

The Albanese government has urged the United States to consider Australia’s trade surplus, arguing that it justifies an exemption. Trump has acknowledged the request but has yet to make a final decision.

Chalmers clarified that while the meeting did not conclude the issue, discussions would continue.

“It’s well understood that, at the end of the day, this will be President Trump’s call,” he told reporters. “The alliance and the economic partnership between Australia and the U.S. is as strong as it’s ever been.”

Reports had suggested that Australia may have exceeded voluntary aluminium export limits, but Chalmers stated that this was not discussed in the meeting.

Concerns Over Steel Imports

Meanwhile, the Australian government is considering imposing steel import quotas amid concerns that cheap Chinese steel could flood the market in response to U.S. tariffs.

Chalmers reaffirmed the government’s commitment to supporting Australian workers and industries.

“The reason that we are pushing for this exemption from the tariffs on steel and aluminium is because we genuinely believe an exemption to be in the interest of both countries,” he said.

Bessent responded cautiously to Australia’s request, stating, “So far, so good. But I’m not USTR (Office of the United States Trade Representative).”

He noted that the final decision rests with the U.S. Commerce Department and the U.S. trade representative.

Albanese’s Direct Appeal

Prime Minister Anthony 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.