Trump Calls Albanese a ‘Fine Man’ but Uncertainty Over Tariffs Remains

Peter Dutton offered bi-partisan support for Anthony Albanese on the tariff issue.
Trump Calls Albanese a ‘Fine Man’ but Uncertainty Over Tariffs Remains
President Donald Trump speaks to reporters in the Oval Office on Feb. 3, 2025. Anna Moneymaker/Getty Images
Monica O’Shea
Updated:

U.S. President Donald Trump has praised Australian Prime Minister Anthony Albanese, but it is still unclear if tariff exemptions for Australian steel and aluminium are still up for consideration.

In his announcement, Trump indicated there would be no exemptions on the tariffs but then later said “great consideration” for exemptions would be given to Australia.

“Today, I’m simplifying our tariffs on steel and aluminum. It’s 25 percent without exemptions or exceptions, that’s all countries, no matter where it comes from, all countries. If made in the United States, however, the United States of America, there is no tariff, zero,” he told the press conference.

“So if it’s made in the United States, there’s no tariff. All you have to do is make it in the United States. We don’t need it from another country.”

However, later in the press conference, Trump was asked about the trade situation with Australia and what he thought about Albanese.

“I just spoke to him. Very fine man. He has a surplus. 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,” he said.

“We actually have a surplus. It’s one of the only countries which we do ... and I told him that [the tariffs are] something that we’ll give great consideration to.”

Both metals have wide uses. Steel is used in buildings, bridges and tunnels and railway components along with transportation, kitchenware, wind turbines, nuclear reactors and manufacturing and machinery.

Meanwhile, aluminium is used in aircraft, cars, trains and railways, ships, spacecraft, satellites, window frames, roofing, building and beverage cans, and packaging along with machinery.

Trump’s comments come after Albanese said the president was “considering an exemption“ for Australia following an urgent phone call.

Discussing his conversation with Trump, Albanese described it 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,”  he told reporters.

“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 aluminium.”

The United States is a leading destination for Australian steel and aluminium exports, totalling US$316.93 million for aluminium and US$237.51 million for iron and steel, according to Trading Economics.

Tariff Would Damage Relationship: Coalition

Opposition leader Peter Dutton also weighed in on the issue, sending a strong message to the Trump administration that the Coalition does not support tariffs.

Dutton said if the tariff remains in place, he believed it would “damage” the relationship between the United States and Australia.

“I think it’s very important for the United States and the Trump administration to hear that there is a bi-partisan position in relation to the prime minister’s call to remove this tariff from a very close and dear ally of the United States,” he told a press conference.

The potential tariff has sent shockwaves through Australian markets and led to many political figures chipping in, including former Prime Minister Malcolm Turnbull.

“All the Australian prime minister can do is use all of his advocacy skills and play a straight bat and defend the Australian national interest,” he told ABC 7:30.

Meanwhile, Rep. Joe Courtney (D-Conn.) has described a potential tariff as an insult to the people of Australia.

Courtney co-chairs Friends of Australia within the Congress and pointed out Australia had recently sent a large cheque to the United States for nuclear submarines as part of the AUKUS defence deal.

He said the first cheque was delivered on Friday, and two days later, the steel and aluminium tariffs were revealed.

“What we’re seeing is a completely needless, almost, insult to the people of Australia by raising tariffs of Australian products coming into this country,” he told Congress.

Monica O’Shea
Monica O’Shea
Author
Monica O’Shea is a reporter based in Australia. She previously worked as a reporter for Motley Fool Australia, Daily Mail Australia, and Fairfax Regional Media. She can be reached at monica.o'[email protected]