The Albanese government is working on plans to shield local steel and aluminium manufacturers from being undercut by global competitors dumping low-cost product, as hopes fade that Donald Trump will exempt Australia from tariffs due to come into effect on Wednesday.

Government moves to strengthen so-called anti-dumping protections were sparked by fears the US president’s 25 per cent tariff on all aluminium and steel imports would cause product to be diverted to Australia and sold at uncompetitive prices that would harm local firms.