
Australia has expressed its disappointment to one of the US’s highest-ranking envoys after the government failed to secure an exemption from American-imposed tariffs.
Trade Minister Don Farrell spoke with US trade representative Jamieson Greer on Tuesday, pressing Australia’s case for a reprieve from the 25 per cent tariffs on steel and aluminium.
The pair discussed the approach of US President Donald Trump towards trade, ahead of a review of the policy to be revealed in April, as well as Australia’s decision not to impose retaliatory tariffs on the US in response to the economic measure.
“The US has a great trading relationship with Australia. We don’t impose a single tariff on the US, and they’ve enjoyed a healthy trade surplus in America’s favour for decades,” Senator Farrell said.
“The Albanese government will always stand up for Australia, we don’t take the easy road and we don’t back down.”
Australian steel and aluminium exports to the US are worth about $1 billion a year in total.
While Australia was among the countries that secured tariff exemptions during Mr Trump’s first term, no nation has been given a reprieve in his second White House stint.
The call with the trade representatives follows similar conversations with US Commerce Secretary Howard Lutnick, as well as talks between Prime Minister Anthony Albanese and Mr Trump.
The tariffs on steel and aluminium sent to the US market have generated concerns similar tariffs could be imposed on agriculture and pharmaceuticals – some of the largest Australian exports to the US.
Australia has floated greater US access to critical minerals – which the Trump White House has by his predecessor – in return for favourable trading regulations.
Mr Albanese used a visit to an aluminium smelter in central Queensland to spruik Australian output of the material, while also hinting at a ‘buy local’ campaign to be rolled out in next Tuesday’s federal budget following the tariffs.
“I want Australian workers to make more things here in Australia,” he told reporters in Gladstone.
“We’ll have a bit more to say as well about buying Australian, about making sure that Australian consumers can also play their role in assisting the creation and maintenance of Australian jobs.”
Treasurer Jim Chalmers said the economy had taken a hit from the tariffs being imposed, but the impact would be manageable.
“It’s the broader, indirect impacts that come from this serious escalation of trade tensions around the world, which is much more concerning to us,” he told ABC radio on Tuesday.
“This is a new world of uncertainty, and the pace of change in the world when it comes to rewriting the rules of global economic engagement has quickened since the new administration took office in the US.
“And for Australia, we have a lot at stake as a trading country.”
Other nations have announced retaliatory tariffs on US products, but the Australian government has ruled such an action out.
“Our strategy in the budget and in our economic plan is not to go for retaliation, but to go for resilience … at a time of very serious global economic uncertainty,” Dr Chalmers said.
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