Donald Trump has issued a crushing blow to the Albanese government by refusing to grant Australia an exemption from tariffs on steel and aluminium imports.
White House Press Secretary Karoline Leavitt revealed that Australia would not be exempt during a press conference at the White House on Wednesday morning Australian time.
Ms Leavitt was asked whether Australia would be spared from the 25 per cent tariffs – as it had been during Trump’s first term – and confirmed the president had ‘considered it and considered against it’.
‘There will be no exemptions,’ Ms Leavitt said.
She added the United States was prioritising ‘American-first steel’ and that Australian-owned companies could ‘consider moving steel manufacturing’ to the US in order to be exempt from the tariffs.
The tariffs, which will make Australian steel and aluminium much more expensive to US buyers and therefore flatten demand, will be imposed from 3pm on Wednesday (AEDT).
News of the tariffs sparked immediate criticism with Aussies calling for the country to respond tit-for-tat and boycott US products.
‘It’s now Australia’s turn to boycott everything American,’ one wrote on Facebook.
Donald Trump has issued a crushing blow to the Albanese government after refusing to grant Australia an exemption from its tariffs on steel and aluminium imports
Another added: ‘Need to put a tariff on all American cars coming into America.’
Prime Minister Anthony Albanese had said on Monday his government would ‘continue to engage constructively’ with the United States on getting an exemption to the tariffs, but Wednesday’s announcement ended those hopes.
‘It is in Australia’s interest, but it’s also in the economic interests of the United States for Australia to be exempted,’ Mr Albanese said.
It comes after Trump told Mr Albanese last month that he would give the prospect of an exemption ‘great consideration’ as Australia was one of few countries that ran a trade deficit with the US.
However, White House Senior Counselor for Trade and Manufacturing Peter Navarro later said Australia was ‘killing’ America’s aluminium industry.
Following Mr Navarro’s comments, Australian Ambassador to the United States Kevin Rudd and Treasurer Jim Chalmers engaged in a series of meetings to discuss an exemption.
However, Foreign Minister Penny Wong admitted at the end of February that Australia had a ‘hill to climb’ when it came to receiving an exemption, regardless of the close ties between the nations.
Australia’s Minister for Housing Clare O’Neil had said negotiations ‘will continue to the very last moment’.
White House Press Secretary Karoline Leavitt explained the United States was prioritising ‘American-first steel’ and that Australia would have to ‘consider moving steel manufacturing’ to the US in order to be exempt from the tariffs
‘We have a never-say-die approach to these things. It is obviously in Australia’s best interests for these tariffs not to be imposed,’ Ms O’Neil told Sunrise as late as Wednesday, less than 24 hours before the decision was announced.
‘We are doing everything we can and fighting with every single tool we have available in order to get ourselves in the best possible position.’
Ms O’Neil said Australia’s strong and resilient economy would survive the tariffs.
‘We have seen time and time again where we have had global turmoil and the Australian government and the Australian people have managed to build and grow our way out of it,’ Ms O’Neil said.
‘We’re going to survive and thrive no matter what happens here… We have a strong, great economy here and will continue to build on that.’
Ms O’Neil added Australia was negotiating from a ‘position of strength’, despite many observers being alarmed by the country’s lack of productivity, and over-reliance on immigration as a way to pump prime GDP.
Shadow Finance Minister Jane Hume called out Mr Albanese and Australia’s Trade Minister for not doing enough in negotiations.
‘Has the Prime Minister been to the States? No. Has the Trade Minister been over there? He said he was going over this week and failed to do so,’ Senator Hume said.
‘I’m urging the Prime Minister to pick up the phone… We are entirely dependent on a strong US economy and our concern is that our aluminium and steel manufacturing sectors here will suffer.’
It comes after Trump told Albanese last month that he would give the prospect of an exemption ‘great consideration’
Trump wasted little time fulfilling his election promise to impose the most largest array of import taxes on international trade since 1930 as he re-positioned the country to an America-first policy.
On Tuesday, Trump revealed he would double Canada’s tariff on aluminium and steel imports to 50 per cent amid an escalating trade war between the two countries.
The tariff initially imposed on Canada was 25 per cent – in line with the steel and aluminium tariffs being levied on all importers to the United States.
The Canadian province’s premier Doug Ford fired back and announced Ontario would place a 25 per cent surcharge on electricity it provided to the US states of Minnesota, New York and Michigan.
In response, Trump said he had instructed his secretary of commerce to specifically increase Canada’s tariffs to 50 per cent.
Mr Ford then revealed he would cancel the 25 per cent tariff on the US after revealing he had spoken with Commerce Secretary Howard Lutnick about the situation.
The pair have agreed to meet on Thursday to discuss reciprocal tariffs that Trump wants to put in place on April 2.
Trump, in response, agreed not to double tariffs on Canadian steel and aluminium to 50 per cent. They will stay at 25 per cent.
Mexico has also been slapped with 25 per cent tariffs on goods being imported into the United States.
Meanwhile, China has been hit with 10 per cent tariffs, which could rise even higher, given that Trump campaigned to inflict a 60 per cent tariff on Chinese goods.
In 2018, Australia was granted an exemption from 25 per cent American tariffs on steel and 10 per cent import taxes on aluminum after then prime minister Malcolm Turnbull pointed out the US had trade surpluses with Australia – where we bought more goods and services from Americans than they bought from us.
