Prime Minister Anthony Albanese has confirmed he has urgent talks scheduled with Donald Trump, after the US President signalled 25 per cent tariffs on all steel and aluminium imports into the US.
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.
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 EU and UK.
So far, there is no sign of a repeat of that for his new term.
On Monday (AEDT), Albanese told the House of Representatives his government would continue to make the case for an Australian carve out from tariffs.
“I have a discussion with President Trump scheduled and I will certainly keep the House and the Australian people informed after that discussion,” he said.
“The Australian people know I will always stand up for them and I will always stand up for Australia’s national interest.”
It will be Albanese’sfirst conversation with Trump since a brief phone call offering his congratulations after the US election.
Earlier, Australia Industry Group chief executive Innes Willox said a tariff on Australian goods would be a “slap in the face” for domestic industry and the US-Australian alliance.
“It is now up to the federal government to quickly step in and protect Australian industry and producers from being caught up in a rapidly escalating global trade war,” he said.
“Reversing these tariffs must be a national priority and the government must use all the leverage at its disposal to quickly turn this around.”
Australian government ministers have met their incoming US counterparts for months, pushing the case for exemptions from potential tariffs. Trade Minister Don Farrell said the government was making arguments to keep trade as open as possible.
“We have consistently made the case for free and fair trade, including access into the US market for Australian steel and aluminium,” he said.
“Our bilateral economic relationship is mutually beneficial — Australian steel and aluminium is creating thousands of good paying American jobs, and are key for our shared defence interests too.”
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.
“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 that 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.
-with AAP
