New blow to Australia’s hope of avoiding Donald Trump’s tariffs

Australia’s bid to avoid hefty trade tariffs from the US as our Ambassador to the US Kevin Rudd was due to discuss a tariff exemption.

Australia’s bid to avoid hefty trade tariffs from the United States has been dealt a fresh blow after Donald Trump’s commerce secretary blasted countries “living and breathing” off the US.

Commerce Secretary Howard Lutnick’s comments came the same day he was due to meet with Australia’s Ambassador to the US Kevin Rudd to discuss a tariff exemption.

Spokespeople for Mr Rudd and Mr Lutnick did not comment on the outcome of the meeting.

However Mr Lutnick appeared on Fox News on Friday local time (Saturday AEDT) where he championed the administration’s tariff plans.

“We are going to teach everybody in America that the people who live and breathe off our country, all these foreign companies and these foreign countries who just live off our economy, they’re going to start to pay,” he said.

US Secretary of Commerce Howard Lutnick (left) and US Secretary of Treasury Scott Bessent (right) in Washington, DC. Picture: AFP

Last month Mr Trump agreed to reconsider moves to place a 25 per cent tariff on Australian steel and aluminium imports during a phone call with Prime Minister Anthony Albanese.

But days before the tariffs are due to be implemented on March 12, a deal has not yet been struck.

Australia’s Ambassador to the US Kevin Rudd. Picture: Supplied

Australia exported more than $700m of steel and aluminium in 2024.

Mr Trump last week implemented 25 per cent trade tariffs on Canada and Mexico but in the days following, made exemptions for imports that complied with United States-Canada-Mexico Agreement, and further concessions for three major automakers.

US President Donald Trump waves as he makes his way to board Air Force One at Joint Base Andrews in Maryland. Picture: AFP

Asked about the uncertainty caused by the introduction and subsequent pauses and exemptions on tariffs, Mr Lutnick on Friday said reciprocal tariffs were coming on April 2 that in effect meant “how you treat us is how we will treat you”.

But he pointed to the pauses placed on Canadian and Mexican tariffs as a sign Mr Trump was willing to negotiate.

“The President listens, he sort of met them in the middle he met Canada and he met Mexico in the middle but let me tell you something if they don’t break fentanyl, then this tariff continues,” he said.

He later shared a clip of the video on X, reiterating his comments.

“All of these foreign companies and these foreign countries, who just live and breathe off our economy, they are going to start to pay,” Mr Lutnick wrote.

“Tariffs are going to save Americans from being poisoned by fentanyl, cut our deficit, and bring our manufacturing jobs back where they belong.”

Originally published as New blow to Australia’s hope of avoiding Donald Trump’s tariffs