As governments contend with the Trump administration’s 25 percent tariff on steel and aluminium, Prime Minister Anthony Albanese says the U.S. president is now “considering an exemption” for Australia.
Albanese, who had his first call with President Donald Trump after he took office, described their conversation as “constructive and warm.”
“I presented Australia’s case for an exemption, and we agreed on wording to say publicly, which is that the U.S. president agreed that an exemption was under consideration in the interests of both of our countries,” Albanese told reporters on Feb. 11.
The prime minister pointed out that the United States has maintained a long-running trade surplus with Australia, roughly two-to-one, since the Truman administration in the 1950s.
“The U.S. is an important investor, of course, here in Australia as well. When you look at the imports of these products into the U.S., it’s about 1 percent of imports of steel, 2 percent of aluminum,” Albanese said.
He emphasised Australian steel and aluminium were integral to U.S. industry, highlighting BlueScope’s $5 billion investment across more than 30 locations in the United States, making it the country’s fifth-largest steelmaker.
“Our major export to the U.S. is Colorbond roofing for California’s West Coast. Aluminium is a critical input for downstream manufacturing in the U.S., and both our steel and aluminium are key components in the defence industries of both nations,” Albanese said.
The prime minister also revealed Trump’s support for the AUKUS trilateral defence pact, and noted he would try to secure a meeting with the U.S. president at the next Quad summit in India.
Hours later, Trump spoke to media about the conversation saying Australia was “one of the only countries” the United States has a surplus with.
“We have a surplus with Australia. One of the few. And the reason is they buy a lot of airplanes. They’re rather far away and they need lots of airplanes,” the president said.
“We actually have a surplus. It’s one of the only countries which we do. And I told him that that’s something that we’ll give great consideration to.”
Industry Impact
If the exemption is not granted the move is set to affect hundreds of millions of dollars’ worth of Australian goods.According to United Nations COMTRADE data, Australian exports to the U.S. are valued at $378 million (US$237 million) for iron and steel and $503 million for aluminium.
Among the hardest-hit exporters are Canada, Brazil, Mexico, South Korea, and Japan for steel, while Canada, China, Mexico, the UAE, India, and Bahrain will feel the brunt of aluminium tariffs.
On Feb. 10, Shadow Minister for Trade and Tourism Kevin Hogan pressed Albanese on what steps his government and Ambassador 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.”
The tariffs did receive criticism from U.S. Congressman Joe Courtney (D-CT) who called it “needless.”
“Now a 25 percent tariff on steel and aluminium products coming from Australia into the U.S. at a time when we have a surplus with Australia,” the congressman told the House of Representatives on Feb. 10.
“Australia is a key strategic ally for our country. They are positioned in the Indo Pacific at a place where, again, tensions are sky high.”
