US President Donald Trump is considering a tariff exemption for Australian steel and aluminium exports, following a call with Australian Prime Minister Anthony Albanese.
But if the exemption is not granted, what does the US tariff mean for the Australian mining industry, and how has local industry responded? Australian Mining investigates.
Tariff
On February 11, Trump announced a 25 per cent tariff on all steel and aluminium imports into the United States.
The tariff will impact every country that exports steel and aluminium to the US, including from Australia.
While signing two executive orders to introduce the new taxes, Trump told reporters there will be “no exemptions or exceptions” to his tariffs.
“Our nation requires steel and aluminium to be made in America, not in foreign lands,” Trump said.
“We need to create in order to protect our country’s future … Protecting our steel and aluminium industries is a must.”
However, shortly after this declaration, Albanese held a press conference in Canberra where he said a tariff exemption for Australian steel and aluminium exports to the US was “under consideration” by Trump after he spoke with the US President.
“I presented Australia’s case for an exemption and we agreed on (the) wording to say publicly, which is that the US President agreed that an exemption was under consideration in the interests of both of our countries,” Albanese said.
If Albanese’s case for an exemption is successful, he would be following in the footsteps of former Australian Prime Minister Malcolm Turnbull, who successfully negotiated Australia out of similar tariffs during Trump’s first term in May 2018.
Industry response
The US tariffs on steel and aluminium are due to come into effect on March 4. They will impact every country that exports steel and aluminium to the US.
The Minerals Council of Australia chief executive officer Tania Constable said the tariffs “would have significant implications for Australian industry”.
“Steel and aluminium are not just key to industrial production but are critical to defence, technology, and advanced manufacturing supply chains,” Constable said.
“These proposed tariffs set a concerning precedent. Action is needed now to ensure that trade restrictions do not expand to critical minerals and other resources that are vital to Australia’s economic future and global supply chains.”
Australia’s aluminium export sector generated $257 million from US imports during the 2023–24 financial year, and Australia’s iron and steel export sector delivered $US238 million ($377 million) from US imports in 2023.
If Australia is not granted a tariff exemption, the country’s steel and aluminium sectors could face heightened costs and diminished demand.
While aluminium is considered a critical mineral in the US, it is not currently on Australia’s critical minerals list. The Australian Aluminium Council is calling for it, alongside bauxite and alumina, to be added as the sector is “vulnerable to disruption”.
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