US President Donald Trump appears poised to impose 25 per cent tariffs on steel and aluminium, which has been slammed as an “insult” to the Australian people.

It’s anticipated Trump will approve an executive order on Tuesday (AEDT), with his schedule showing he is due to sign orders in the Oval Office from 7am (AEDT).

Prime Minister Anthony Albanese is also due to hold a pre-scheduled phone call with Trump on Tuesday and has promised to plead Australia’s case.

It is unclear whether Australian exporters will be included in the tariffs, given they were exempted under similar measures imposed by Trump during his first term.

Democratic congressman Joe Courtney, who co-chairs the Friends of Australia Congressional Caucus, said hitting Australia with tariffs was needless.

He told the US House of Representatives that Australia was injecting US$3 billion ($A4.8 billion) into the US as part of AUKUS, and asked what Trump was doing in return.

(On Saturday, Australia paid the first $800 million down payment to the US to deliver AUKUS nuclear-powered submarines to Australia.)

“The first cheque was delivered … and two days later what do we see? A 25 per cent tariff on steel and all products coming from Australia into the US,” Courtney said.

“What we’re seeing is a completely needless, almost insult, to the people of Australia.”

Trump revealed he planned to impose blanket 25 per cent tariffs on all steel and aluminium imports while en route to the Super Bowl in New Orleans on Monday.

Australian government officials have been trying to secure an exemption for exporters for months.

Tuesday’s crisis phone call will be Albanese’s first opportunity to plead Australia’s case directly to the President.

The pair have not spoken since a brief congratulatory phone call shortly after Trump’s election in November.

Businesses are concerned Australian jobs and living standards are under threat.

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.

If Trump followed through on the threat, it would have significant implications for Australian industry, said Minerals Council of Australia chief executive Tania Constable.

“These proposed tariffs set a concerning precedent,” she said.

“Action is needed now to ensure that trade restrictions do not expand to critical minerals and other resources that are vital to Australia’s economic future and global supply chains.”

Business Council of Australia chief executive Bran Black said free and open trade supported one in four Australian jobs and contributed to lifting quality of life.

“Australia has a good story to tell — the US has a trade surplus with us and we have long-standing cultural and military ties between countries, particularly with the significant AUKUS agreement,” he said.

The largest sources of US steel imports are Brazil, Canada and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.

Meanwhile, Canada accounted for 79 per cent of US primary aluminium imports in the first 11 months of 2024.

Even if Australia fails to receive an exemption, the impacts to its economy are unlikely to be catastrophic.

AMP chief economist Shane Oliver said it would be bad for Australian steel and aluminium producers but, with exports to the US at just 0.03 per cent of Australian GDP, the macro-economic impact would be minimal.

The real risk to Australia’s economy came from reduced global trade, Oliver said.

‘Charge them’

During his first four-year term from 2017, Trump imposed tariffs of 25 per cent on steel and 10 per cent on aluminium.

But he later granted several countries exemptions including Australia, Brazil, Canada and Mexico and his successor Joe Biden later negotiated duty-free quota deals with the United Kingdom, Japan and the EU.

With more demands for exemption and negotiation in prospect, some said Trump’s action would first of all damage the US economy by raising the cost of the raw materials it depends on.

“Canadian steel and aluminum support key industries in the US from defence, shipbuilding and auto,” Canadian Innovation Minister Francois-Philippe Champagne posted on X.

“We will continue to stand up for Canada, our workers and our industries.”

Trump promised further announcements this week of broader reciprocal tariffs to match those of countries importing US goods, saying “if they charge us, we charge them”.

He has long complained about the EU’s 10 per cent tariff on car imports, much higher than the US car rate of 2.5 per cent.

However, the US applies a 25 per cent tariff on utes, a vital source of profit for Detroit car makers General Motors, Ford and Stellantis’ US operations.

Overall, the US trade-weighted average tariff rate is about 2.2 per cent, according to World Trade Organisation data, compared to 12 per cent for India, 6.7 per cent for Brazil, 5.1 per cent for Vietnam and 2.7 per cent for the EU.

-with AAP