Australia has failed to win an exemption from Donald Trump's 25% tariffs on aluminium and steel, but the government has vowed to fight on for a carve out.
Author
- Michelle Grattan
Professorial Fellow, University of Canberra
The White House spokeswoman, Karoline Leavitt, told Australian media in Washington "there will be no exemptions" from the tariffs, which come into effect imminently. Pressed on why, she said "America First steel".
She said, "If they want to be exempted, they should consider moving steel manufacturing here".
Deputy Prime Minister Richard Marles said the government would continue to lobby for an exemption. He pointed out it had taken the Coalition government many months to win a carve out from tariffs under the first Trump administration.
"Tariffs don't make any sense, it's an act of kind of economic self harm. We'll be able to find other markets for our steel and our aluminium and we have been diversifying those markets. But we're obviously really disappointed with this.
"I would say, though, we'll keep advocating to the United States on this issue. Last time around it was nine months before we got an exemption in relation to steel and aluminium out of the Trump administration in its first term. So, we'll keep pressing the case, we'll keep diversifying our own trade. But look, there's no hiding this, we're really disappointed with this decision."
Opposition deputy leader Sussan Ley said the government "just hasn't done enough".
"All of the other leaders of the Quad and AUKUS, Japan, India, the UK, travelled to the US, and they had face-to-face meetings, and they did what they needed to do. They advocated fiercely in their country's interests, but this prime minister has been nowhere to be seen."
But given no exemptions are being provided, a personal trip by the Albanese would likely have had little effect. The PM made the case for an exemption to the president in a call some weeks ago. In that conversation Trump indicated he would consider Australia's case, but the government quickly became pessimistic about the administration giving it a special deal.
BlueScope, while expressing disappointment, saw one silver lining. "BlueScope produces more than 3 million tonnes of steel per annum at its NorthStar BlueScope plant in Delta, Ohio. As the US tariffs come into effect the company expects to see the positive impact from an improvement in steel prices."
Former prime minister Malcolm Turnbull this week predicted Trump would shy away from exemptions this time around. While some observers said Turnbull's broad attack on Trump, whom he called a bully, would work against Australia's lobbying, it seems to have been irrelevant, given all representations were rejected.
The Australian concern is less the direct impact of the tariffs - our exports of steel and aluminium to the US are limited - but the fallout from an international trade war that could be sparked by Trump's policies.
Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
