Australia will not be exempt from the U.S. steel and aluminum tariffs set to be imposed on Wednesday, as reported by Australian media citing a White House official. Despite initial discussions following a phone call between President Donald Trump and Australian Prime Minister Anthony Albanese in February, where exemption was considered due to the trade surplus with the U.S., Trump has now opted against it. White House spokeswoman Karoline Leavitt stated, "If they want to be exempted, they should consider moving steel manufacturing here."
Previously exempted during Trump's first presidential term, Australia will be subject to the 25% tariffs on imported steel and aluminum products as of Wednesday. Trump also mentioned a 50% tariff for Canada in the escalating trade tensions. However, following discussions, he indicated a possible reduction in tariffs after Canadian officials agreed to engage in talks.
The Australian government has been actively engaging with U.S. authorities to secure an exemption, as stated by a government spokesperson. Despite Australia’s minor role as a steel exporter to the U.S., its significance as a global iron ore exporter is notable. Australia represents 1% of steel imports and 2% of aluminum imports in the U.S., underscoring its importance as a security ally in the Indo-Pacific region.