Trump adviser: ‘Australia killing the US aluminium market’
Donald Trump’s top trade adviser has unleashed on Australia, dealing a blow Anthony Albanese’s hopes of a tariff carve out.
Economy
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Donald Trump’s top trade adviser Peter Navarro has unleashed on Australia for “killing the aluminium market”, in a blow to hopes that the US President will grant Anthony Albanese’s plea for a tariff carve out.
The Prime Minister’s hopes of securing an exemption from Mr Trump’s new tariffs have been rocked by the trade hawk’s public sprays this morning on Fox News and CNN.
“Australia is crushing, just crushing — with the help of China — our aluminium sector,” Mr Trump’s senior counsellor for trade and manufacturing told Fox News.
“The President says no more country exemptions, no more product exclusions. We’re going to run into a beautiful golden age.”
Mr Navarro has fought for years to convince the US to impose tariffs.
When then-Prime Minister Malcolm Turnbull negotiated an exemption for Australian exports to the US in 2018, Mr Navarro lobbied internally to reimpose tariffs on Australia a year later.
At the time it is said that Scott Morrison made some verbal guarantees on aluminium exports but that these were subsequently not enforced by US President Joe Biden, leading to the situation today.
The pro-tariff adviser reportedly urged the President to hit Australia in response to a surge of Australian aluminium in the American market in 2019, the same argument being made today.
The New York Times reported back then that the US Defense and State Departments told Mr Trump the move would alienate a top ally and could come at significant cost to the US.
The tariff proposal was supported in 2019 by Robert Lighthizer, the US trade representative, and Mr Navarro, then director of White House trade and manufacturing policy, but faced fierce opposition from US military officials and diplomats.
Trump’s new tariffs
This week, Mr Navarro pushed back on the calls for an exemption noting Australia exported 223,000 tonnes of steel to the US, and 83,000 tonnes of aluminium.
That’s a fraction of Australia’s total exports — around 1 per cent — but it’s angering the Americans.
“Australia is just killing our aluminium market,” Mr Navarro told CNN. “President Trump says no, no, we’re not doing that anymore.”
“Our aluminium industry is on its back,” Mr Navarro said.
“It’s a 50 per cent capacity utilisation rate. In Australia, it’s 90 per cent. And we can’t afford not to have strong aluminium and steel industries.”
Chalmers weighs in
Treasurer Jim Chalmers told Seven’s Sunrise he was not aware of the “verbal commitment” Australia allegedly offered under the Morrison government to voluntarily limit aluminium exports.
“I’ve obviously seen the reports out of DC,” Mr Chalmers said.
“This happened under the previous Coalition government.
“They may be able to provide a bit more colour and context around some of these sorts of claims.
“No doubt we’ll be able to find a way … to get to the bottom of what’s happened there.”
Mr Chalmers said the conversation between Mr Albanese and the US President on Tuesday was “very, very positive”.
“The conversation that happened yesterday was very productive, very positive,” Mr Chalmers said.
“Prime Minister Albanese made the case for our steel and aluminium exporters standing up for our national economic interest, and for Australian jobs.
“I think it’s a good thing that President Trump said he would be willing to consider that exemption.
“We obviously don’t take any outcome for granted, but I think yesterday’s conversation between the two leaders was a positive step.”
‘Verbal commitment’
Despite describing the Prime Minister as a “fine man” and confirming he will consider Australia’s pleas for an exemption for 25 per cent tariffs, Mr Trump accused Australia of breaking its word on aluminium exports.
The official US proclamation on tariffs, released after Mr Trump signed the executive order, accused Australia of going back on a “verbal commitment to voluntarily restrain its aluminium exports at a reasonable level”.
“The volume of US imports of aluminium articles from Argentina, Australia, Canada, Mexico, EU countries, and the UK in 2024 was approximately 14 per cent higher than the average volume of such imports in 2015 through 2017,” the proclamation said.
“The volume of US imports of primary aluminium from Australia has also surged and in 2024 was approximately 103 per cent higher than the average volume for 2015 through 2017.”
Trump singles out Australia
The Albanese government remains confident that a special deal for Australia is in the offing despite the US President’s public statements.
“Today I’m simplifying our tariffs on steel and aluminium,” Mr Trump said. “It’s 25 per cent without exceptions or exemptions.”
But shortly after signing the tariff order where he insisted there would be no exceptions, the US President confirmed that Australia might secure a better deal.
“Mr President, the Australian prime minister has said you are considering an exemption for Australia on steel. Is that correct?” Mr Trump was asked.
“I just spoke to him. Very fine man. He has a surplus,” the US leader replied.
“We have a surplus with Australia. One of the few. And the reason is they buy a lot of aeroplanes.
“They’re rather far away and they need lots of aeroplanes. We actually have a surplus. It’s one of the only countries which we do.
“And I told him that that’s something that we’ll give great consideration to.”
Dutton warns of ‘damage’
Liberal leader Peter Dutton said he wanted “there to be a very clear message to the Trump administration that we don’t believe that this tariff should be put in place”.
“And if it remains in place, then I believe it will damage the relationship between the United States and Australia,” he said.
“We have an incredible relationship with the United States. Long standing, we fought for over 100 years, side-by-side with the United States. They’re obviously part of the Five Eyes compact. There is clearly a very important people-to-people link to span generations through the different arrangements that we’ve had in the trade space, in science, in many areas of mutual endeavour.
“We’ve done a lot of work with the United States, clearly, to try and provide support and stability, whether that’s in Iraq or whether it’s in Afghanistan, whether it’s in our near region.
“Tariffs are not warranted against Australia, particularly because we have a trade surplus with the United States.”
Albo’s phone call
Mr Trump’s announcement came shortly after Mr Albanese held a press conference revealing the pair had a “great conversation” and that a tariff exemption was “under consideration”.
In a post on X, he stressed the pair were “committed to working constructively together to advance Australian and American interests”.
“For decades, the Alliance between the United States and Australia has served the interests of both our nations, and supported peace, stability and growth in our region,” he wrote.
“I look forward to working closely with President Trump to create jobs and deliver benefits for both our nations.”
But Mr Albanese, who once joked that Mr Trump’s presidency “scares the s**t out of me”, has been urged to stand up for Australia without “sucking up” to the world leader.
“I will always stand up for Australia’s national interests, and it is in Australia’s national interest to have free and fair trade,” Mr Albanese told parliament on Tuesday.
“We will navigate any differences which are there diplomatically, and we will continue to make the case to the United States for Australia to be given an exemption to any steel and aluminium tariffs.
“We regard this as also being in the United States’ national interest as well. Tariffs, of course, don’t tax us — they tax big purchasers of our products. That is something which is very clear.”
Mr Turnbull urged the PM to stand up and not “suck up” to the United States.
“If you’re going to cut a deal with Trump, the person to do it has got to be the Australian Prime Minister,” Mr Turnbull said.
Mr Turnbull previously convinced Mr Trump in 2017 that exempting Australia from his steel and aluminium tariffs was a “fair and reciprocal” outcome.
“All you can do is stand up for Australia, play a straight bat and make your case,” he said.
“[But] if Trump has decided to impose a steel tariff on everybody, full stop, no exemptions, then it may not be possible to win one, no matter how eloquent you are.”
Originally published as Trump adviser: ‘Australia killing the US aluminium market’
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