Albanese pushes for tariff exemption in urgent talks with Trump

File Source: The Canberra

Prime Minister Anthony Albanese has confirmed he will hold urgent talks with Donald Trump after the US President announced plans to impose a 25 percent tariff on all steel and aluminium imports. Speaking from Air Force One en route to the Super Bowl in New Orleans on Sunday, Trump said the tariffs would take effect almost immediately.

“Any steel coming into the United States is going to have a 25 per cent tariff,” he declared. When asked about aluminium, he confirmed, “aluminium, too” would face the same penalties.

The move could deal a major blow to Australia, which exported approximately $638 million worth of steel and $439 million in aluminium to the US last year, according to the UN’s COMTRADE database. Trump also reaffirmed plans for “reciprocal tariffs” on imports from countries that impose duties on American goods. “If they are charging us 130 per cent and we’re charging them nothing, it’s not going to stay that way,” he said.

During his first term, Trump imposed similar tariffs but later granted duty-free quotas to key allies, including Australia. However, there is no indication that Australia will receive an exemption this time.

Addressing the House of Representatives on Monday (AEDT), Albanese assured Australians that his government would fight for an exemption. “I have a discussion with President Trump scheduled, and I will certainly keep the House and the Australian people informed after that discussion,” he said. “The Australian people know I will always stand up for them and I will always stand up for Australia’s national interest.”

This will be Albanese’s first direct conversation with Trump since a brief congratulatory call following the US election. Meanwhile, Australia’s business and political leaders are ramping up pressure on the government to secure an exemption.

Innes Willox, chief executive of the Australian Industry Group, warned that the tariffs would be a “slap in the face” to Australian industry and the long-standing US-Australia alliance. “It is now up to the federal government to quickly step in and protect Australian industry and producers from being caught up in a rapidly escalating global trade war,” he said. “Reversing these tariffs must be a national priority.”

Australian ministers have been lobbying their US counterparts for months to secure exemptions. Trade Minister Don Farrell stressed the government’s commitment to free and fair trade. “We have consistently made the case for free and fair trade, including access into the US market for Australian steel and aluminium,” he said. “Our bilateral economic relationship is mutually beneficial—Australian steel and aluminium is creating thousands of good-paying American jobs and is key for our shared defence interests too.”

The opposition has also urged the government to act swiftly. Trade spokesman Kevin Hogan warned that time was running out. “It is time-critical that the Labor government ensures an exemption for Australia,” he said. He pointed to the previous Coalition government’s success in securing exemptions during Trump’s first administration, crediting former ambassador Joe Hockey’s efforts.

“The ambassador to the US is one of the most critical diplomatic roles Australia has. Albanese handpicked Kevin Rudd for this position,” Hogan added. “Prime Minister Albanese and Ambassador Rudd have a big job on this issue. I hope they are up to it.”

As the trade dispute unfolds, Trump also made headlines by suggesting that US debt levels were lower than reported and raising concerns about potential fraud in debt payments. The US Treasury, however, estimates the country’s public debt at $36.2 trillion, a key factor in the global financial system.