US trade war risks Aussie jobs and billions of dollars

THOUSANDS of Aussie jobs and $5 billion in income are at risk in just one year after Donald Trump’s top trade officials indicated Australia would not get a special mates’ pass on massive new tariffs on steel and aluminium imports to the US.

THOUSANDS of Aussie jobs and $5 billion in income are at risk in just one year after Donald Trump’s top trade officials indicated Australia would not get a special mates’ pass on massive new tariffs on steel and aluminium imports to the US.

Weeks of intense lobbying by Prime Minister Malcolm Turnbull, Trade Minister Steve Ciobo and Foreign Minister Julie Bishop for a special exemption on the US President’s new protectionist measures have not paid off — yet.

However, Mr Ciobo told the Daily Telegraph he was still hopeful major Australian manufacturers including BlueScope and Rio Tinto — who employ 135,000 workers between them — would be exempt even after Mr Trump’s trade adviser Peter Navarro warned that there would be “no country exemptions” on the tariffs expected to come into effect this week.

“There’ll be an exemption procedure for particular cases where we need to have exemptions so that business can move forward, but at this point in time, there are no country exclusions,” Mr Navarro said.

Mr Trump’s trade adviser Peter Navarro.

Australian Trade Minister Steve Ciobo. AAP Image/Lukas Coch

Mr Ciobo said an announcement from the Trump Administration “that ensures Australia’s steel and aluminium exports to the United States can continue unaffected would be welcome and good for Australian and American jobs”.

“However at this stage Australia, like the rest of the world, is awaiting clarity to see how we will be affected.”

It is understood Defence Minister Marise Payne has also lobbied US national security officials while Australia’s ambassador Joe Hockey has raised the issue directly with the White House.

The Telegraph understands those talks have been positive, largely because the US exports more to Australia than it imports, but the decision still rests with Mr Trump.

Top Republican Paul Ryan, has urged the Trump administration not to move forward on new tariffs.

“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan. The new tax reform law has boosted the economy and we certainly don’t want to jeopardise those gains,” said AshLee Strong, a spokeswoman for Mr Ryan.

US President Donald Trump and Australian Prime Minister Malcolm Turnbull in Washington DC. Picture: Nathan Edwards

The tariffs put a 25 per cent price increase on steel imports and a 10 per cent rise in aluminium imports, putting Australian exports to a major trading partner at risk.

Deloitte Access Economics modelling found the trade tariffs could cost Australia 20,000 jobs, wipe $5 billion off the national income within a year and reduce business investment.

Worried about the impact on $240 million of steel exports and $70 million in aluminium exports, Labor’s treasury spokesman Chris Bowen yesterday took the unusual step of giving his full support to the government.

Rio Tinto, major producer of aluminium in Australia and Canada, said it would continue to lobby US officials to stop the tariffs. “Aluminium from Canada and Australia has long been a reliable and secure input for US manufacturers — including the US defence sector,” the company said in a statement.

Mr Turnbull and Mr Ciobo at the White House for US-Australia trade talks. Picture: Prime Minister’s Office

BlueScope, which employs thousands of workers in Australian steel making plants, is understood to be working with the Turnbull government to secure an exemption from the Trump Administration.

But it also concedes it would benefit from tariffs because of its major North Star steel mill in the United States, which would gain from higher import prices.