PM Malcolm Turnbull’s warning: US has ‘literally nothing’ to gain from Trump’s proposed steel tariffs

MALCOLM Turnbull has issued a blunt warning of a potential global trade war, while declaring the US has ‘literally nothing’ to gain from Donald Trump’s planned tariffs.

MALCOLM Turnbull says the United States have “literally nothing” to gain from President Donald Trump’s planned tariffs on steel imports from Australia.

Meanwhile, Treasurer Scott Morrison says the Australian Government is “keeping its head” on the possibility of a trade war and warned reporters today against alarming Australians.

It comes as the Trump Administration was rocked by White House chief economic adviser Gary Cohn announcing his resignation today following the President’s announcement last week he would impose the steep tariffs on steel and aluminium imports.

Prime Minister Turnbull used a major speech to a business forum in Sydney today to argue against the President’s planned tariffs.

“There is literally nothing to be gained in the United States at all from imposing a tariff on Australian steel exports,” Mr Turnbull told the forum.

Malcolm Turnbull in Question Time in the House of Representatives. Picture: Kym Smith

All that would result from imposing the tariffs on Australia would be that building costs on the west coast of America would rise, he said.

Cost would spike as, historically, the west coast had imported steel because it was cheaper than shipping the material from the east coast.

Mr Turnbull said Australia had made a strong case with the US President and White House staff against imposing the tariffs on our steel.

He argued “openness and flexibility” were the keys to prosperity, not protectionism, while highlighting that Australia and 11 other nations would sign the updated Trans Pacific Partnership in Chile tomorrow without the US.

The Prime Minister also warned other nations against sparking a global trade war by retaliating to the steep tariffs on steel and aluminium imports, saying it would be a “race to the bottom” where everyone would lose.

“History teaches us that there are no winners in a trade war,” he said.

White House chief economic adviser Gary Cohn. Picture: AP

“A trade war is a race to the bottom that makes us all poorer, leaves our citizens with less choice and fewer opportunities.”

Mr Turnbull’s warning comes as nations around the world consider their response to President Trump’s announcement last week that his administration would place tariffs of 25 per cent on steel imports and 10 per cent on aluminium imports.

European nations have threatened to retaliate with tariffs on American products.

But Australia and other US allies in the Asia-Pacific have so far avoided a strongarm response.

Prime Minister Turnbull held talks with his Japanese counterpart Shinzo Abe about the US tariffs yesterday but the two leaders have not announced whether they will co-operate on a response.

Treasurer Morrison today said the government was “keeping its head” on the threat of a trade war.

“The government is keeping its head and I think it’s very important that everyone else keep their head on this,” he told reporters in Canberra.

“I don’t think we should be alarming Australians about this.”

Originally published as PM Malcolm Turnbull’s warning: US has ‘literally nothing’ to gain from Trump’s proposed steel tariffs