Australia will not receive an exemption from the latest round of US tariffs on steel and aluminium, White House press secretary Karoline Leavitt says.
Key Takeaways
- US President Donald Trump had considered exempting Australia from the 25% tariffs but ultimately decided against it, according to reports from the ABC and Sydney Morning Herald.
- Australian government officials, including Prime Minister Anthony Albanese and Foreign Minister Penny Wong, lobbied for an exemption, but the US administration rejected their appeals.
- Trump’s trade adviser Peter Navarro has accused Australia of undercutting the American aluminium market, suggesting local manufacturers should relocate to the US if they want exemption.
- The Australian government had previously argued that its trade relationship with the US is different from other countries, that are facing similar tariffs.
- The decision follows Trump’s move to double tariffs on Canadian steel and aluminium to 50%, escalating trade tensions globally.
Key background
Trump’s decision marks a shift from his initial willingness to consider Australia’s case. Following a call with Albanese last month, Trump had signalled he would give the matter “serious consideration.” However, Navarro and other officials opposed the move, with Navarro claiming Australia was “killing” the American aluminium industry.
The tariffs take effect on Wednesday (Thursday local time), adding to a wave of protectionist measures aimed at boosting domestic manufacturing.
Australia previously secured an exemption from similar tariffs during Trump’s first term in 2018 after months of negotiations.
Crucial quote
“He considered it, and considered against it. There will be no exemptions,” Leavitt said when pressed on the decision by the SMH, adding, “America First steel.”
Big number
$150 billion – the estimated total value of US imports impacted by Trump’s steel and aluminium tariffs, covering raw materials and consumer products such as sporting goods and electronics, according to Bloomberg.
What to watch for
Trump’s tariff escalation extends beyond Australia, with Canada and Mexico also facing increased duties. Canada, in particular, has been hit with a 50% tariff, prompting retaliatory measures.
Forbes.com reports that the US receives most of its imported aluminium products from Canada (more than US$9.4 billion in 2024) – which will be hit by the planned 50% tariffs – followed by the United Arab Emirates (US$917 million) and China (US$809 million), while the rest of the world supplied just under a combined US$7 billion.
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