Prime minister Anthony Albanese confirmed that Australia will not impose reciprocal tariffs on the US despite Donald Trump’s decision to apply 25 per cent tariffs on all imported steel and aluminium.
Mr Albanese called the move “entirely unjustified” and harmful to the US-Australia relationship but ruled out reciprocal tariffs, saying they would raise prices and fuel inflation in Australia.
The PM said on Wednesday that Mr Trump’s move went “against the spirit of our two nations’ enduring friendship, and fundamentally at odds with the benefits that our economic partnership has delivered over more than 70 years”.
Mr Trump had earlier suggested he might exempt Australia from the 25 per cent tariffs, which take effect on Wednesday.
White House spokeswoman Karoline Leavitt told ABC News: “He considered it, and considered against it. There will be no exemptions.” When questioned about the reason, she responded: “America First steel”, adding “If they want to be exempted, they should consider moving steel manufacturing here”.
Meanwhile, Mr Albanese added that he would continue lobbying for an exemption.
“Our government will continue to put forward a very strong case for an exemption, noting that the last time this occurred it took months for that exemption to be granted … Australia will work hard for a different outcome and discussions with the Trump administration are ongoing.”
He said: “Australia has a close relationship with the United States. Friends need to act in a way that reinforces, to our respective populations, the fact that we are friends.
“This is not a friendly act. But it is imposed on every country, that is important.”
Mr Trump previously exempted Australia during his first term.
Experts warn the tariffs will negatively impact Australian metal producers and miners, though the direct economic effect is limited since steel and aluminium exports to the US make up a tiny fraction of Australia’s trade.
Last month, hopes for a tariff exemption rose when Mr Trump promised “great consideration” after a cordial call with Mr Albanese. However, they were later crushed when Mr Trump’s trade adviser Peter Navarro accused Australia of “killing” American aluminium.
“There were many country exemptions given, not just to Australia but to many other countries, and every single country abused those exemptions,” he said.
On Wednesday, Australian foreign minister Penny Wong said that the tariffs were “not good for the American economy and it’s not the the way to treat a friend and partner”.
“Tariffs and escalating trade tensions are a form of economic self-harm and a recipe for slower growth and higher inflation. They are paid by the consumers. This is why Australia will not be imposing reciprocal tariffs on the United States. Such a course of action would only push up prices for Australian consumers and increase inflation,” Mr Albanese said.
