Jim Chalmers will travel to Washington tonight to meet with the US Secretary of Trade to discuss the threat of steel and aluminum tariffs.
Labour is considering introducing local steel allocations to major projects to protect Australia’s steel industry after US President Donald Trump announces future tariffs.
“We’re looking at the procurement part of this,” Treasury Secretary Jim Chalmers told ABC insiders.
“If there’s more we can do, and there’s more we can think about that aspect, obviously we’ll do that.”
The Australian Steel Institute warned that if the future of steel production is not guaranteed, Australia will be exposed to serious economic impacts and unemployment.
When asked if the quota could push construction costs up, Chalmers said the government would consider the implications.
“But we hope that Australian steel will be used in Australian projects,” he said.
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“There is no doubt about that yet.”
Potential tariffs
Trump is expected to communicate his decision on tariffs on steel and aluminum by mid-March, and there is a good chance that cheap Chinese steel will be available in Australia after that.
The Chalmers confirmed they would travel to Washington on February 23 to meet with the US Treasury Secretary to discuss trade and the threat of steel and aluminum tariffs.
Foreign Minister Penny Wong and Defense Minister Richard Marless also travelled to meet the recently sworn-sold-out US counterparts in Washington.
“Trade and tariffs are part of the conversation, but not the entire conversation,” Chalmers said.
“It’s the ongoing discussion we’re having with our American counterparts. I don’t expect to conclude these discussions about steel and aluminum while I’m in DC.”
Supporting the steel industry
It comes days after Prime Minister Anthony Albanese and South Australian Prime Minister Peter Marinauskas announced an industry support package in Wamala with the aim of protecting thousands of jobs before the federal election.
The package reaches $2.4 billion (US$1.5 billion) and comes after the law runs through South Australian Parliament to join Whyalla Steelworks in administration.
Approximately 75% of Whyalla participate in infrastructure projects in Australia.
“This reflects our belief in the town of Wayarra, the wider region, the future of steel, the future of manufacturing, and the future of Australia,” Chalmers said.
“What these investments are all about is keeping your steel plants open while you’re looking for a more permanent, long-term solution.”
“In both of these cases, our preferences and objectives are for private sector buyers, but we are ready to play a role.”
