Trump’s latest tariff threat a big blow to Australia
US President Donald Trump is poised to announce 25 per cent tariffs on all steel and aluminium imports into the US – potentially hitting Australia.
Trump made the announcement from Air Force One on his way to the Super Bowl in New Orleans on Sunday (US time).
He said he would announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately.
“Any steel coming into the United States is going to have a 25 per cent tariff,” he said
When asked about aluminium, he responded, “aluminium, too” would be subject to the trade penalties.
If the move goes ahead, it will likely be bad for Australia. Last year, the US imported about $638 million of Australian steel and $439 million in aluminium, according to the UN’s COMTRADE database.
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Trump also reaffirmed that he would announce “reciprocal tariffs” – “probably Tuesday or Wednesday” – meaning the US will impose import duties on products in cases where another country has levied duties on American goods.
“If they are charging us 130 per cent and we’re charging them nothing, it’s not going to stay that way,” he said.
During his first term, Trump imposed tariffs of 25 per cent on steel and 10 per cent on aluminium. He later granted several trading partners, duty-free quotas, including Australia, Canada, Mexico, the European Union and the United Kingdom.
So far, there is no sign of a repeat of that for his new term.
The opposition has urged the federal government to push hard for further exemptions.
“It is time critical the Labor government ensures an exemption for Australia,” trade spokesman Kevin Hogan said.
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“When we were in government during President Trump’s first administration, there were the threats of tariffs on aluminium and steel. We were able to successfully have Australia exempted from these tariffs back then and the current government must get the same result.”
Hogan said a “strong ambassador” – Joe Hockey at the time – was critical to Australia’s success in getting the tariff exemptions. He said current ambassador Kevin Rudd had to step up.
“The ambassador to the US is one of the most critical diplomatic roles Australia has. Albanese handpicked Kevin Rudd for this position,” Hogan said.
“Prime Minister [Anthony] Albanese and ambassador Rudd have a big job on this issue. I hope they are up to it.”
Trump also said the US had less debt than thought and questioned whether there was fraud related to debt payments.
The US has $US36.2 ($A57.7) trillion public debt outstanding, according to the US Treasury, which plays a central role in the global financial system.
Trump confirmed he is committed to buying and owning Gaza, but could give sections of the land to other states in the Middle East to help in the rebuilding effort.
He said he believed the US was making progress in its talks with Russia over the war in Ukraine. He declined to provide details on a recent discussion with Russian President Vladimir Putin, adding he expected more conversations.
He also expressed doubts about the future of the US Agency for International Development and said he would let the State Department handle its remaining funding, suggesting that some of the agency’s staff could go there.
– with AAP
