Australian government scrambles to secure exemptions to Trump’s 25% tariff on steel imports | Australian politics

The Australian government is still trying to secure exemptions to new 25% tariffs that Donald Trump says will be imposed on all steel and aluminium imported into the US, making the case for “free and fair trade” with America.

President Trump told reporters on Monday that he would impose tariffs on all steel and aluminium imports into the US, on top of existing metal duties. When asked which countries would be subject to the trade barriers, Trump replied: “Everybody.”

“Any steel coming into the United States is going to have a 25% tariff,” Trump said, adding aluminium imports would also be subject to the same figure.

The Albanese government has been bracing for such a decision, with senior ministers and officials working behind the scenes for some time to secure tariff exemptions on Australian exports as were achieved during Trump’s first term in office.

The trade minister, Don Farrell, and his colleagues had been seeking to make Australia’s case to avoid such tariffs, with representations made at high levels for exemptions. The defence minister, Richard Marles, was in the US over the weekend meeting with senior Trump officials.

“The Albanese Labor Government has been working hard from day one, standing up for Australia’s interests. We have shown how effective we are in dealing with our major international partners,” Farrell said in a statement.

“We have consistently made the case for free and fair trade, including access into the US market for Australian steel and aluminium.

“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.”

Farrell had said publicly that his mission to avoid tariffs on Australian goods had been made harder because his US trade counterpart had not been confirmed by the US Senate.

Trump, during his first term, imposed tariffs of 25% on steel and 10% on aluminium, but later granted several trading partners duty-free quotas, including Australia, when Malcolm Turnbull was prime minister.

Guardian Australia revealed last week that Australian officials grappled with the incoming US president’s “unclear” trade proposals in the wake of his election victory.

Documents obtained under freedom of information found officials from the Department of Foreign Affairs and Trade had recommended talking points emphasising Australia bought more products from America than it exported, and Albanese government ministers have stressed the economic benefits of the Australia-US trade relationship.

Last week the treasurer, Jim Chalmers, described Trump’s tariffs on China, Canada and Mexico as “big developments” but “not a big surprise”.

“We won’t be immune from trade tensions around the world but we’re confident that we can navigate these new policies out of the US,” Chalmers said at the time.

“We’re well placed, we’re well prepared, and we’ve got a different kind of economic relationship with the US than some of these other countries that are being targeted.”

The opposition’s trade spokesperson, Kevin Hogan, said the Labor government must move more strongly to seek special treatment over the looming steel and aluminium tariffs.

“It is time critical the Labor government ensures an exemption for Australia,” 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 pointed to the Turnbull government’s work in securing tariff carve-outs in 2017 in Trump’s first term.

“A critical component was a strong ambassador – we had ambassador [Joe] Hockey who helped Australia to successfully negotiate exemptions from United States steel and aluminium tariffs,” he said.

“The ambassador to the US is one of the most critical diplomatic roles Australia has. Albanese handpicked Kevin Rudd for this position. Albanese and Rudd have a big job to do here.”

Shares in Australia’s biggest steel producer, BlueScope, rallied after investors bet that the company’s large US operations would protect it from fallout linked to the tariffs.

While BlueScope is best known in Australia for its Port Kembla steelworks, south of Sydney, the company generates more revenue from its North American operations than in Australia, according to its most recent financials.

It has a large presence in Ohio, and could therefore end up a beneficiary of a tariff regime that hinders rivals.

Its shares were up 4% earlier on Monday, in response to Trump’s announcement. A BlueScope spokesperson said the company would “continue to work with the Trump administration and the Australian government, as we await further details”.

Steel fabricator Bisalloy did not fare so well on Monday morning, with its shares falling 4% in early trading.

The benchmark S&P/ASX 200 was down 0.25% by late morning, tracking a sell-off on Wall Street on Friday. The tariff announcement likely created further uncertainty for traders, weighing on overall market sentiment.