Trump Is Now Flagging Tariffs On Steel And Aluminium. Can Albanese Win An Exemption For Australia?

(MENAFN- The Conversation) The Albanese government is set to mount a major effort to win an exemption from a proposed 25% tariff on steel and aluminium imports to the United States foreshadowed by President Donald Trump.

Assuming trump follows through on the move, it will put major pressure on the prime Minister to match the success of the Turnbull government in 2018 when Trump put a 25% tariff on steel and a 10% tariff on aluminium in his first administration.

Speaking to reporters travelling on Air Force One, Trump flagged he would make the tariff announcement on Monday (Washington time). He said the tariffs would start“almost immedciately” on all foreign steel and aluminium imports.

The Australian government on Monday was scrambling to put together its response, although government sources insisted it was not surprised and was well prepared.

Cabinet met on Monday morning where the Trump comments were presumably discussed.

Trade Minister Don Farrell said on Monday:

Sources said the government had been making representations on steel and aluminium for months.

Last week, Farrell said he was seeking talks with incoming US Commerce Secretary Howard Lutnick, but that would have to wait until he was confirmed.

In the lobbying for special treatment, the government will stress that the US has a trade surplus with Australia.

In 2023-24, the US imported about 240,000 tonnes of steel products from Australia, valued at US$250 million (A$400 million).

US imports of Australian aluminium peaked in 2019 at about 270,000 tonnes and declined to around 83,000 in 2024. The three-year average imports from Australia were 167,000 tonnes per year, valued at US$496 million (A$791 million).

Nationals leader David Littleproud said the issue was a test for Anthony Albanese and Australia's ambassador to the US, Kevin Rudd.

Littleproud said :

Littleproud said if Rudd was“not the right person to have these discussions, then we should be mature enough as a country to send someone who can have those discussions to get that carveout”.

Deputy Prime Minister Richard Marles has just returned from Washington.

At a news conference there, he was asked whether Australia was concerned about direct reciprocal tariffs or a flow-on effect from them.

Marles said:

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