Labor mulls tariffs response, vows to ‘act in national interest’
The Albanese government is mulling a response to Donald Trump’s decision not to exclude Australia from sweeping US tariffs.
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Labor will “act in our national interest” as it mulls a response to Donald Trump’s decision not to exclude Australia from blanket US tariffs on steel and aluminium, Richard Marles says.
No country, friend or foe, was spared from US President’s sweeping levies when they came into force on Wednesday.
Western allies in Europe and Canada have already announced countermeasures on US goods worth tens of billions of dollars.
The Deputy Prime Minister said on Thursday a response was coming but that “retaliatory tariffs” were not the way.
“Well, we’ll act in our national interest first and foremost, and we will look at all ways in which we can respond and how that might be calibrated,” Mr Marles told the ABC.
“But in terms of doing retaliatory tariffs, that would not be in the interests of the Australian economy, of Australian workers.
“So, we’re not about to do anything which is an act of self harm. And really, this is ultimately the point here.
“I mean, tariffs are an act of self harm. This is not going to do the American economy any good and we’re not about to engage in harming the Australian economy.
“So, the way in which we will conduct ourselves going forward is very much focusing on Australia’s national interests. And that’s as it should be.”
Mr Trump decided not to grant Australia an exemption from the 25 per cent imposts after telling Anthony Albanese it was “under consideration”.
White House press secretary Karoline Leavitt said on Wednesday that Mr Trump had “considered it and considered against it”.
“There will be no exemptions,” she told the Nine papers after a briefing.
Pressed on why Australia – a key defence, intelligence and trade partner – was not given an exemption, Ms Leavitt said: “America-first steel.”
In 2018, former prime minister Maclolm Turnbull secured an exemption after the first Trump administration slapped similar tariffs on steel and aluminium.
But it took nine months to strike the deal.
Trade tsar Don Farrell is set to meet Washington’s trade envoy on Sunday.
He said he had “very strong argument” going into the talks.
“Two way trade between the Australia and the United States is very much in America’s favour,” the Trade Minister told reporters.
“We buy $70bn worth of product from them, we only sell $30bn worth of product.
“It makes absolutely no economic sense to impose tariffs on Australia in those circumstances.
“That’s the argument we’re … going to continue to put until the Americans realise that they are heading down the wrong path here.
“This is not the way to increase your prosperity. The way to increase your prosperity is tariff-free trade between our countries.”
But Labor’s top diplomat has warned Canberra was dealing with a different Trump White House.
“Look, I think it’s pretty clear that the government, from the Prime Minister down, has been working overtime to try and land this deal,” Penny Wong told Seven’s Sunrise.
“The reality is, as we know from what the White House has said, they reckon that the exemption they gave last time to Australia and other countries was a mistake.
“So this time they were very clear that they didn’t want any exemptions.”
‘Back Australia’: Call on Dutton
The Foreign Minister also accused Peter Dutton of choosing to play politics instead of backing Australia on the world stage as smelters braced for the tariffs.
The Opposition Leader went on the attack when responding to the duties, calling Anthony Albanese “weak and incompetent” and saying he did not believe an Australian exemption was impossible.
Senator Wong said Mr Dutton should “back Australia”.
“We invite Mr Dutton and the opposition to back Australia here,” she said.
“Mr Dutton has a chance to stand up for Australia. Instead, he stands for political opportunity.
“I would say to him, you’ve got a chance over the next few weeks.
“Back Australia, back buying Australian. Back Australia in our campaign to try and ensure that beef … and other products continue to enter the US free of tariffs.”
Meanwhile, Mr Dutton has doubled down, claiming he could get Mr Trump to “arrive at a deal” that no other country has managed.
“This government just hasn’t put the work in and the Prime Minister hasn’t been to Washington because the President won’t meet with him,” Mr Dutton said.
“There should have been a lot of work done in the run up to the President’s election, but of course, Anthony Albanese and Kevin Rudd never thought that Donald Trump would be elected.”
He said he would “do whatever it takes to do the best deal for Australia, whereas the Prime Minister … is just out of his depth again, and unfortunately, Australians are paying the price for that.”
Around the world and here at home, our government will always stand up for Australian jobs and Australian industries.
— Anthony Albanese (@AlboMP) March 12, 2025
The US decision to impose tariffs on Australian steel and aluminium as part of a global decision is unjustified.
As with the other products and resources that… pic.twitter.com/lMO7fB86NX
‘Senseless slap in the face’
After the tariffs came into effect, US Commerce Secretary Howard Lutnick accused Australia of “dumping” cheap aluminium in the US.
“You’ve got dumpers in the rest of the world. Japan dumps steel, China dumps steel … we’re going to stop that nonsense and bring steel here,” Mr Lutnick told Fox Business on Wednesday (Thursday AEDT).
“We’re not going to stand for China dumping, Japan dumping, Australia does a lot of aluminium at below cost.
“I mean, this has got to end, and the President is on it, and he’s protecting America.”
It echoed remarks made Mr Trump’s top trade adviser Peter Navarro, who last month accused Australia of “killing our aluminium market”
But the sentiment has not been shared by all in Washington, with Democrat Joe Courtney, the co-chair of the Congressional AUKUS Working Group, again coming to Australia’s defence.
“The US & Australia have enjoyed free trade for 20 years because it’s in America’s best interests,” he posted on social media.
“Indeed, today the US has a TRADE SURPLUS with Australia!
“A month ago, under AUKUS, Australia delivered a $500M check to the US Navy, with $2.5B more on the way. And an Australian steel company has created 5,000 AMERICAN JOBS in 16 states.
“The Trump tariffs that went into effect today are a senseless slap in the face.”
The US & Australia have enjoyed free trade for 20 years because it’s in America’s best interests. Indeed, today the US has a TRADE SURPLUS with Australia!
— Rep. Joe Courtney (@RepJoeCourtney) March 12, 2025
A month ago, under AUKUS, Australia delivered a $500M check to the US Navy, with $2.5B more on the way. And an Australian… pic.twitter.com/bwh9AoSLLf
More to come
Originally published as Labor mulls tariffs response, vows to ‘act in national interest’
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