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Panic is setting as it’s being reported that Australia will not at this stage be exempt from 25 per cent tariffs on all steel and aluminium imports, despite a positive phone call between Donald Trump and Anthony Albanese.
After teasing tariffs throughout the entire initial period of his presidency, it’s been reported by The Sydney Morning Herald that, as it stands, US President Donald Trump will follow through on including Australia in his 25 per cent tariffs on all steel and aluminium imports.
As previously reported on HR Leader’s sister brand, Accounting Times: “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,” said Minister for Trade and Tourism Don Farrell.
“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.”
A phone call that took place yesterday (11 February) between Prime Minister Anthony Albanese and Trump eased the panic that the original announcement caused as, according to The Sydney Morning Herald, Trump claimed that he would “consider” an exemption for Australia. Yet, not long after this phone call occurred, Trump announced that “it’s 25 per cent without exceptions or exemptions, and it’s all countries, no matter where it comes from”.
The Australian Industry Group (Ai Group) believes that any US-imposed tariffs on Australian goods should be considered a “slap in the face”.
“We worked with DFAT and trade negotiators during the previous Trump administration and have been doing the same with the new administration to seek to ensure there are zero tariffs for aluminium, steel and iron produced in Australia,” said Innes Willox, chief executive of the national employer association, the Australian Industry Group.
“A tariff on Australian goods, despite us having a longstanding free trade agreement with the United States and agreements around exemptions for Australian-produced goods during the previous Trump administration, would be a slap in the face for Australian industry and our mutually beneficial economic and security arrangement.”
“This decision reminds Australia that nothing can be taken for granted in what is a rapidly changing world.”
Willox believes that wilful optimism in relation to this situation is “wilfully misplaced”, arguing that real action must be taken to ensure that Australia isn’t caught up in a “rapidly escalating global trade war”.
“On trade, the President is simply doing what he said he would do,” he said.
“Pollyannaish hopes that we would fly under the radar have proven to be sadly misplaced. That this advice has been given the day after our Deputy Prime Minister was in Washington to hand over billions of dollars to secure the AUKUS submarine deal is particularly troubling.”
“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.
“Reversing these tariffs must be a national priority, and the government must use all the leverage at its disposal to quickly turn this around.”
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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.
