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Newly imposed tariffs on Australia will certainly have an impact – but there are real opportunities as a result of such geopolitical shifts.
US President Donald Trump has announced that Australia will not be exempt from his imposition of tariffs on steel and aluminium exports. Trump was quick to proclaim that Canada and China were going to be on the receiving end of his new tariffs, yet Prime Minister Anthony Albanese hoped that the two nations’ “enduring friendship” would lead to an exemption for Australia.
This exception so far has failed to formulate, with Albanese labelling the US President’s decision as “entirely unjustified”.
“The United States decision to impose tariffs on Australian steel and aluminium as part of a global decision is concerning. It has been foreshadowed that no country, regardless of its relationship with the United States, has been granted an exemption. Such a decision by the Trump administration is entirely unjustified,” said Albanese in a media statement.
“This is against the spirit of our two nations’ enduring friendship and fundamentally at odds with the benefits our economic partnership has delivered over more than 70 years. Australia has no tariffs on goods from the United States.”
“Australia will continue working hard for a different outcome, and discussions with the Trump administration are ongoing. Our government is prepared and has been engaging directly with the Australian steel and aluminium industry and will continue working through this with them.”
Despite panic setting around the prospect of these imposed tariffs, Australian Workers Union (AWU) national secretary Paul Farrow claimed that Australia can thrive through these changes if the government gets behind Australia’s steel and aluminium industry.
“Australia is very good at making steel and aluminium. Trump knows it, and it’s about time we recognise it too,” said Farrow.
“We need to stop eating this crap we’ve been fed by the Coalition that Australians can’t make things competitively. What the government must do now is simple. Australian steel and Australian aluminium must be mandated for use in all Australian infrastructure and government buildings from this point onward.”
“Australia’s purist free-market approach on procurement was naive a decade ago, sticking to it now would be sheer idiocy. If government money is being used to build, say, a wind turbine then the towers should be made from Australian steel.”
Touching on how the tariffs are set to impact SMEs, Daniel Hunter, chief executive of Business NSW, claimed that these trade agreements between nations are a “foundation” for “economic prosperity”.
“Free and open trade agreements between nations are the foundation of our collective economic prosperity,” said Hunter.
“This prosperity would not be possible without small and medium enterprises (SMEs). SMEs are often suppliers to these large manufacturers who sit at the heart of these regional communities. Potentially the biggest impact of the tariffs will be in the Illawarra and Hunter, where NSW has steel and aluminium manufacturing and fabrication capabilities.”
“There are thousands of people who are directly and indirectly employed in connected industries in NSW. There will be disruption because some big producers are locked into contracts with the USA. But I suspect that – if this tariff continues – big producers will then be respectfully looking elsewhere at other markets.”
Although the “doom and gloom” outlook on the situation has its merits, Hunter commended the “agility” of producers in NSW – reaffirming the demand for NSW and Australian products across alternative markets.
“We have got producers in NSW that deal directly with the USA, but not all their eggs are in one basket. They are agile. There is very strong demand for NSW and Australian products around the world. We have no doubt there will be plenty of alternative markets,” said Hunter.
“It’s time for our political and business leaders from across the spectrum to support our SME manufacturing sector and the communities they serve.”
While optimism is clearly present among business circles, Albanese doubled down on the fundamentally avoidable issues that these tariffs present.
“As with the other products and resources that Australia has, we will continue to diversify markets for our products which are in demand globally. Australian steel and aluminium exports to the United States represent less than 0.2 per cent of the total value of our exports. Neither is in the top 10 of what Australia sells to the United States,” said Albanese.
“Tariffs and escalating trade tensions are a form of economic self-harm and a recipe for slower growth and higher inflation. 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.
“We will continue to engage constructively with the United States and to make the case for Australian trade and the benefits it delivers to Americans.”
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
