In Short:
- Prime Minister Anthony Albanese is set to discuss proposed US steel and aluminium tariffs with President Donald Trump.
- Australia previously secured exemptions during Trump’s first term.
- The US president has yet to formally announce the tariffs, but signaled them in a recent press conference.
Albanese Pushes for Exemption
“I have a discussion with President Trump scheduled and I will certainly keep the House and the Australian people informed after that discussion,” Mr Albanese said.
“The Australian people know I will always stand up for them and I will always stand up for Australia’s national interest.”
This marks his first substantial conversation with Mr Trump since offering congratulations on his election victory.
Pressure to Secure Trade Benefits
In 2018, Australia successfully secured an exemption from similar tariffs alongside countries like Canada, Mexico, and the UK. Now, the government is emphasizing its close ties with the Trump administration, including recent high-level visits.
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Deputy Prime Minister Richard Marles recently traveled to Washington DC, reinforcing Australia’s position. Trade Minister Don Farrell echoed the government’s commitment to free and fair trade.
“We have consistently made the case for free and fair trade, including access into the US market for Australian steel and aluminium,” Mr Farrell said.
“Our bilateral economic relationship is mutually beneficial — Australian steel and aluminium is creating thousands of good-paying American jobs, and are key for our shared defense interests too.”
Strategic and Economic Ties at Stake
Australian steel plays a crucial role in US defense projects, including the Virginia-class nuclear submarines Australia is set to acquire under the AUKUS pact.
Industry groups warn that allowing tariffs could significantly impact Australia’s exports. In 2023, Australia exported 223,000 tonnes of steel and 83,000 tonnes of aluminium to the US, valued at hundreds of millions of dollars.
Opposition Calls for Swift Action
The Opposition is urging the government to act quickly, arguing the tariffs will test its ability to maintain strong ties with the US.
“This is a test for Anthony Albanese and Kevin Rudd,” Nationals leader David Littleproud said.
“We have a very compelling story. We just signed a cheque for over $500 million for AUKUS, we’re paying our own way.”
Deputy Prime Minister Marles defended Mr Rudd’s diplomatic credentials, describing him as a “force of nature” with significant influence in Washington.
Industry Leaders Warn Against Complacency
Innes Willox, CEO of the Australian Industry Group, said Australia must not assume it will automatically be granted an exemption.
“The president is simply doing what he said he would do,” Mr Willox said. “That this advice has been given the day after our deputy prime minister was in Washington to hand over billions of dollars to secure the AUKUS submarine deal is particularly troubling.”
BlueScope Highlights US Investment
BlueScope Steel, Australia’s largest steel producer, is also monitoring the situation closely. The company, which has a significant presence in the US, underscored its commitment to fair trade.
“BlueScope has been investing in the United States for 30 years,” a spokesperson said. “We will continue to work with the Trump administration and the Australian Government, as we await further details.”
What Lies Ahead?
Australia has enjoyed a free trade agreement with the US for two decades, with the majority of trade between the nations currently tariff-free.
As the US moves toward formalizing the new steel and aluminium tariffs, the Albanese government faces a critical test of its diplomatic influence. Reversing these tariffs, industry leaders insist, must be a national priority.
