Trump rules out tariff exemption for Australian steel, aluminium exports
By Michael Koziol
Washington: President Donald Trump has ruled out a tariff exemption for Australia on steel and aluminium exports, due to begin tomorrow in the US.
“He considered it, and he considered against it,” White House press secretary Karoline Leavitt told this masthead.
Donald Trump and Anthony Albanese.Credit: AP, Alex Ellinghausen
Asked why he had decided against the carve-out, she indicated there would be no exemptions. “America First steel. If they want to move their steel manufacturers here, they’re welcome to do so.”
A spokesperson for the Albanese government said it remained in talks with the Trump White House.
“The government has been working hard at all levels to secure an exemption,” they said. “We remain in discussion with the United States administration and will have more to say.”
Cabinet minister Clare O’Neil told Seven’s Sunrise program discussions were ongoing and she was not going to accept a final decision had been made. “We still have a little bit of time and lots of discussions continuing to happen.”
The decision not to grant any exemptions comes weeks after Trump said he would give “great consideration” to a carve-out for Australian metal products following a phone call with Prime Minister Anthony Albanese.
The Albanese government made a concerted attempt to avoid the tariffs, pursuing a carve-out similar to that granted to Malcolm Turnbull when he was prime minister during Trump’s first term.
Treasurer Jim Chalmers flew to Washington to meet his counterpart Scott Bessent, while Australian ambassador to the US Kevin Rudd met with Commerce Secretary Howard Lutnick last Friday to plead Australia’s case.
However, in recent days, Trump’s advisers had played down the chance of an exemption. White House National Economic Council director Kevin Hassett said the president did not like exemptions generally, and Leavitt indicated on Tuesday that no country would receive one.
Shadow minister for trade and tourism Kevin Hogan said the Albanese government had failed in a “critical task”.
“During the Coalition’s time in government, we successfully negotiated exemptions from United States’ steel and aluminium tariffs,” he said.
Ontario Premier Doug Ford added a tariff onto electricity exported to the US.Credit: nna\riwood
On Sunday night US time, Trump watched Turnbull speak against the tariffs on Bloomberg television and then posted on TruthSocial that Turnbull had been a “weak and ineffective leader” of Australia, prompting a war of words between the two men.
Despite US markets plunging in recent days amid uncertainty over tariffs and the broader economy, Trump flagged his intention to persist with the 25 per cent levy on steel and aluminium imports.
But in a demonstration of the fluidity of the situation, he proposed – then wavered on – doubling the tariff on steel and aluminium from Canada to 50 per cent when the rates start on Wednesday, US time.
That move was in response to Ontario, Canada’s most populous province, imposing a 25 per cent surcharge on electricity exports to the US. “Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why?” Trump posted on his TruthSocial website.
“And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!”
However, by Tuesday afternoon, the Ontario threat was suspended. The province’s premier Doug Ford and US Commerce Secretary Howard Lutnick released a joint statement saying they had a productive conversation and would meet in Washington later in the week.
Trump told reporters he would probably retract his threat to double the steel and aluminium tariffs on Canada.
More to come
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