US President Donald Trump’s new 25% tariffs will have a major impact on countries such as Canada, China, Brazil and Mexico.
Australian leaders are considering the next step after US President Donald Trump announced that he has wiped out 25% tariffs on steel and aluminum imports, affecting hundreds of millions of Australian goods I’m trying to give it.
Trump confirmed that the new obligation applies to all steel and aluminum imports.
“Steel coming into the US will have 25% tariffs,” Trump told reporters.
Australia’s steel exports to the US are valued at around $378 million (US$237 million), while aluminum exports are worth around $53 million, according to UN contrade data.
Shares of Bluescope, one of Australia’s biggest steelmakers, actually rose in response to the news. The company operates major businesses in the United States.
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Australia seeks tariff exemption
The Australian government is actively lobbying for tariff exemptions, as it was successful during Trump’s first term.
Trade Minister Don Farrell has made major efforts to convince US officials to reconsider, arguing that tariffs are unfair given the US trade surplus with Australia.
“The US is Australia’s biggest economic partner, with $1.17 trillion inwardly foreign investment,” Farrell told Sky News.
Defense Minister Richard Marless recently travelled to engage Secretary of Defense Pete Hegses.
US Secretary of Defense Pete Hegses (R) and Australia’s Deputy Prime Minister and Minister of Defense Richard Marles (L) participated in a bilateral meeting held on February 7, 2025 at the Pentagon in Arlington, Virginia. Alex Wong/Getty Images
Meanwhile, Farrell acknowledged that the debate is complicated by the fact that Trump’s trade representative has not yet been confirmed.
“We showed we were very enthusiastic about talking,” Farrell confirmed he reached out to Trump’s candidate for Secretary of Commerce, Howard Lutnick.
“You are not in a position to discuss with other countries until you are approved by the Senate, but you made it clear that you want to get involved as soon as possible.”
Opposition trade spokesman Kevin Hogan said labor needs to strengthen its diplomatic efforts.
“We had an ambassador (Joe) hockey who helped Australia successfully negotiate exemptions from US steel and aluminum tariffs,” he said.
“As a US ambassador, Australia is one of the most important diplomatic roles. Albanese picked Kevin Rudd by hand for this position. Albanese and Rudd are things to do here.”
The Albanese government supports the aluminum industry
Tariffs are at a critical time for Australia’s aluminum sector, exporting $5.2 billion worth of aluminum in 2024 and employing more than 17,000 people.
In response to growing uncertainty, Prime Minister Anthony Albanese recently announced $2 billion in support for the industry, aiming to strengthen its competitiveness.
“This investment will help Australia lead the metals industry,” Albanese said at the time. Aluminum is Australia’s fourth largest export of raw materials, with major markets in Korea, Japan and the US, the third largest buyer.
Farrell is optimistic that Australia can secure an exemption and argues that tariffs on Australia’s exports are economically meaningless.
“Since Donald Trump was first elected, trade from America to Australia has doubled. Without tariffs, Americans have done very well in terms of their trading relationship with Australia.”
