Mixed tariff messages after PM’s Trump call
US President declares ‘no exemptions’ on steel and aluminium tariffs, despite PM saying Australian carve out is being considered.
Prime Minister Anthony Albanese says US President Donald Trump is considering an exemption for Australia on steel and aluminium tariffs following a phone call on Tuesday.
Only shortly after, however, Trump signed an executive order imposing 25 per cent tariffs on steel and aluminium imports in the US, declaring “no exemptions” – although he later appeared not to rule out a possible carve out for Australia.
The two leaders spoke on the phone in what Albanese said was a “constructive and warm discussion” early on Tuesday, as he put forward Australia’s case for an exemption.
“We agreed on wording to say publicly, which is that the US President agreed that an exemption was under consideration for in the interests of both of our countries,” Albanese said in Canberra.
“We’ll continue to engage quite clearly, constructively.”
In the Oval Office soon after, Trump signed a “proclamation” on tariffs.
“Today I’m simplifying our tariffs on steel and aluminium,” he said.
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“It’s 25 per cent [on steel], without exceptions or exemptions. That’s all countries, no matter where it comes from, all countries.
“[And on] aluminium, the same thing, no exceptions, no nothing.”
Despite that, Trump said he had confirmed to Albanese – a “very fine man” – he would give “great consideration” to the US’s decades of trade surplus with Australia.
“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 [with] which we do. And I told him that that’s something that we’ll give great consideration to.”
The latest tariffs will take effect in March.
Albanese was asked on Tuesday if there would be an exemption for Australia – and did not elaborate further.
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“The words that I’ve used are the words that I’ll stick to,” he said.
“It’s appropriate when you’re dealing with the President of the United States to not speak on his behalf and those are the words that were agreed.”
The phone call, set up before Trump’s tariff plan was revealed on Monday (AEDT), was the first time the two leaders have spoken since Trump was sworn in in January.
Trump imposed similar tariffs on steel and aluminium during his first term in office, but Australia was able to carve out an exemption.
Australian exports of iron and steel to the US were valued at $US237.5 million ($378.9 million) in 2023, while aluminium exports were worth $US316.9 million ($505.5 million), according to the United Nations COMTRADE database.
“When you look at the imports of these products into the US, it’s about 1 per cent of imports of steel, two per cent of aluminium. Our steel is an important input for US manufacturing,” Albanese said.
Top ten countries affected by tariffs on steel and aluminium imposed by the Trump Administration. Source: The US International Trade Administration
Albanese said BlueScope was the US’s fifth-largest steelmaker, with $5 billion invested in a range of US states.
“What I envisage is continuing to act to respond diplomatically. That’s how you get things done. My government’s got a record of getting things done in Australia’s national interest, I’ll continue to do so,” he said.
Albanese said he was confident about a deal being struck on an exemption.
“If you have a look at what we’ve achieved already, it’s been a tremendous start to the relationship,” he said.
“The relationship is in good shape.”
The pair also discussed critical minerals and Australian Jordan Mailata being part of the Philadelphia Eagles, who won the Superbowl on Monday.
Trump has also said he will look at further additional tariffs on vehicles, pharmaceuticals and computer chips.
– with AAP
