Trump Considers Tariff Exemption for Australian Steel and Aluminum

MELBOURNE, Australia — U.S. President Donald Trump has stated that he is open to examining a tariff exemption for steel and aluminum imports from Australia. This announcement came after a phone discussion with Australia’s Prime Minister, Anthony Albanese, on Tuesday.

During their conversation, which was planned before Trump unveiled tariffs on steel and aluminum imports the previous day, Albanese advocated for an exemption. He emphasized that Australia maintains a trade surplus with the U.S., which plays a role in Trump's consideration.

“We actually have a surplus,” Trump informed reporters in the Oval Office about the trade relationship with Australia. “It’s one of the only countries with which we do. I told (Albanese) that we will give great consideration to this matter.”

Albanese confirmed to the media in Canberra that he had made a strong case for the exemption and mentioned that both leaders agreed on a public statement saying, “The U.S. president agreed that an exemption was under consideration in the interests of both our countries.” He added that it was a constructive and positive discussion.

Historically, Australia benefited from a tariff exemption during Trump’s first term in office. The Australian government argues that they have been in a trade deficit with the U.S. for many decades and highlighted that companies like BlueScope, an Australian steelmaker, provide employment to thousands in the U.S. market despite having only a small share in it.

Additionally, Albanese brought up the AUKUS agreement with the U.S. and the U.K., which permits Australia to acquire a fleet of submarines powered by U.S. nuclear technology. He noted that steel and aluminum are crucial components for the U.S.-Australia defense industries.

Trump's strategy includes adjusting U.S. tariffs on all imports to align with the rates imposed by other countries. This follows the introduction of a 10% tariff on China and the retaliatory measures initiated by China. Specific tariffs planned for Canada and Mexico have been postponed until March 1.

This phone call marked Dennis Albanese’s second discussion with Trump since the latter was elected. After the call, Albanese expressed confidence, stating that, “The relationship is in good shape.”

Trump, tariff, Australia