Queensland caught in trade war crossfire

NORTH and central Queensland, already struggling with high unemployment, could be dealt another blow if US President Donald Trump’s aluminium tariffs go ahead.

NORTH and central Queensland, already struggling with high unemployment, could be dealt another blow if US President Donald Trump’s aluminium tariffs go ahead.

More than 8000 jobs in Queensland are dependent on the aluminium and bauxite industry, from mines in Weipa to smelters in Gladstone.

Australia is not expected to be exempt from the proposed 10 per cent tariff on aluminium and 25 per cent on steeldue to be imposed this week.

While the US purchases $127 million of Australian aluminium a year, the fear is the US’s major suppliers will flood markets where Australia sells.

Boyne Smelters in Gladstone, which employs about 1000 people, cut jobs last year because of electricity prices.

Aluminium ingots await export at Comalco group's Boyne Smelters as company posted $236 million profit at AGM 22/02/99. Industry / Mining

Flynn MP Ken O’Dowd said he was concerned there would be more employment “trouble” for the port city.

“The tariffs are probably aimed at China, but if we get hit in the crossfire we’ll be hurt,” he said.

Ken O'Dowd fears for jobs.

Resources Minister Matt Canavan said he was concerned by the issue and the Government was examining what the precise impact might be.

Prime Minister Malcolm Turnbull receiving assurances about exemptions from the US at the G20 summit in Germany last year.

Trade Minister Steve Ciobo followed up with his American counterpart on Saturday, but said afterwards it appeared details of the new imposts were still being worked out and ultimately any exemptions would be a decision for Mr Trump.

Rio Tinto reminded the US that Australian aluminium was an “integral part” of US defence industrial bases.

Trade Minister Steve Ciobo said he wanted “more clarity” on the issue.

Aluminium is a $3.2 billion industry for Australia, with the US the fifth biggest buyer.