Donald Trump hints at steel tariff exemption for Australia after phone call with Anthony Albanese

Donald Trump has slapped 25 per cent tariffs on steel imports “without exception” - but singled out Australia after a phone call with Anthony Albanese.

US President Donald Trump has slapped 25 per cent tariffs on steel and aluminum imports, but will give “great consideration” to an exemption for Australia after a phone call with Anthony Albanese.

“This is a big deal,” Trump said while signing the executive order in the Oval Office.

“The beginning of making America rich again.”

The Albanese Government remains confident that a special deal for Australia is in the offing.

“Today I’m simplifying our tariffs on steel and aluminum,” Mr Trump said. “It’s 25 per cent without exceptions or exemptions.”

Australia’s trade minister Don Farrell is planning to fly to the US within days to hold talks with his counterpart over a possible exemption for Australia.

Shortly after signing the tariff order where he insisted there would be no exceptions, he 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 airplanes.

“They’re rather far away and they need lots of airplanes. 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.”

Anthony Albanese called Donald Trump (above) in a bid to gain an Australian exemption for America’s brutal 25 per cent tariffs on steel imports. Picture: X

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Peter Dutton weighs in on tariff threat

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 linked to span generations through the different arrangements that we’ve had in the trade space, in science, in many areas of mutual endeavor.

“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.”

Donald Trump said there were “no exceptions” to the tariffs, but moments later conceded he was considering one for Australia after a phone call with Mr Albanese. Picture: Andrew Cabalerro-Reynolds/AFP

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But Mr Dutton then offered a back-hander to Mr Albanese over his previous comments about Mr Trump.

“I think it’s a statement of fact that the Prime Minister has made the relationship more difficult through his previous comments, the comments of Penny Wong and comments, obviously, of Ambassador Rudd, which were deeply personal in nature,’’ Mr Dutton said.

“And the President will have noticed those comments. I think it’s very difficult when that’s the starting point in the relationship. But what’s important now is that the Trump administration hears that there is a bipartisan position in Australia to stand up for our national interest, and that national interest is best served by a removal of the tariff as it applies to Australia.

“And if it stays in place, then I think it damages the relationship, and I’ve been very clear about that.”

Mr Dutton said he did not support tariffs as a general proposition for any country.

“I don’t support the imposition of tariffs in any circumstance unless there is a national security imperative,’’ he said.

“I believe very strongly in free markets. And I think from the Trump administration’s perspective, you can understand, given some of the trade deficits and and some of the inequalities in their interpretation of those relationships. And ultimately, it’s an issue for them. “But do I believe in the application of tariffs ? No I don’t. I want to see a free and vibrant trading market.”

Liberal leader Peter Dutton accused the PM of making Australia’s relationship with the US “difficult”. Picture: NewsWire / Martin Ollman

Albo’s phone call with Trump

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”.

“I presented Australia’s case for an exemption, and we agreed on wording to say publicly, which is that the US President agreed that an exemption was under consideration in the interests of both of our countries,” Mr Albanese said in Canberra shortly after 9am.

“Look, what I envisage is continuing to act to respond diplomatically.

“That’s how you get things done. My government’s got a record of getting things done in Australia’s national interest. I’ll continue to do so.”

“I’ve made it very explicit - I said to President Trump that this was an issue of some media coverage in Australia, and that we therefore agreed on the words that would be used - that it was ‘under consideration’,” he added.

“That’s what I’ll stick to. But we’ll continue to engage - quite clearly constructively. But I’ll say this - it was a very constructive and warm.”

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.”

Mr Albanese insisted the tariff exemption was “under consideration” during a press conference on Tuesday morning. Picture: NewsWire / Martin Ollman

Mr Albanese had earlier vowed to make the case for “free and fair trade” with America ahead of the emergency call with the US President.

But Mr Albanese, who once joked that Mr Trump’s presidency “scares the s*** 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.”

During his first term, the US President imposed tariffs of 25 per cent on steel and 10 per cent on aluminium, but later granted several trading partners duty-free quotas, including Australia.

President Trump’s tariffs for ‘everybody’

It follows Mr Trump’s bombshell announcement on Monday that he would impose tariffs on all steel and aluminium imports into the US.

Asked which countries would be subject to the new trade barriers, he replied: “Everybody.”

“Any steel coming into the United States is going to have a 25 per cent tariff,” he said.

But as Australia scrambles to seek an exemption, like the one from his first term, US political leaders are urging the President to rethink the decision.

Anthony Albanese speaks to Donald Trump on the phone. Picture: X

Trump’s tariff call branded an ‘insult’

Democratic Congressman Joe Courtney, who co-chairs the Friends of Australia Congressional Caucus, slammed the decision, pointing to the AUKUS defence pact.

Just days after Deputy Prime Minister Richard Marles handed over a cheque for $800 million for AUKUS to the US, Mr Courtney said the tariff plan was an “insult to Australians”.

“The first cheque was delivered on Friday … and two days later what do we see? A 25 per cent tariff on steel and all products coming from Australia into the US,” Mr Courtney said in the US House of Representatives.

“What we’re seeing is a completely needless, almost insult, to the people of Australia.

“By all the measurements President Trump talks about – trade issues, that we’re being ripped off by other countries – in this [Australia’s] case, every one of those arguments fails.

“We will do everything we can to make sure that this administration changes course and treats our friends and our allies with the respect that they deserve.”

Mr Trump on Air Force One yesterday, signing an executive order making February 9 “Gulf of America Day”, to commemorate his unilateral renaming of the gulf. It was during this event that he revealed the new tariff plan. Picture: Roberto Schmidt/AFP

Was Deputy PM Richard Marles tipped off?

Mr Courtney noted that Australia had committed to buy three US Virginia class nuclear-powered submarines at “full price, no gimmes, no giveaways”.

Asked on Monday whether he was given a heads up about the incoming tariffs when he was in the US to hand over the $800 million AUKUS down payment, Mr Marles declined to say.

“Well, [Defence] Secretary [Pete] Hegseth and I have both made public statements about the meeting that we had and I’m obviously not going to go into what was said in the meeting beyond those public statements,’’ Mr Marles said.

“But I make two points. One is that in relation to AUKUS, an underlying component of AUKUS has been to see trade much more easily occur within the defence industry. That’s a function of the legislation which went through the United States Congress at the end of 2023 with the support of Republicans.

“And the second point I’d make is, more broadly, there is very much advocacy on the part of our government to the Trump Administration around the question of tariffs.

“We will continue to advance Australia’s interests in relation to trade.”

Richard Marles during his meeting with Pete Hegseth. He was joined by our ambassador to the US, Kevin Rudd. Picture: Oliver Contreras/AFP

Turnbull offers some free advice over ‘sucking up’

Former prime minister Malcolm 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.”

Kevin Rudd under fire over Trump sprays

Meanwhile, the opposition has raised concerns that Kevin Rudd, who once described Mr Trump as “the most destructive president in history”, might have to be replaced as Australia’s ambassador to the US.

Mr Marles defended his record, praising Mr Rudd as “a very skilled diplomat” and “a force of nature” for Australia’s interests.

Mr Rudd previously called Mr Trump a “village idiot” and a “traitor to the West”.

In response, the US President suggested that the former prime minister turned diplomat was “nasty”, and suggested Mr Rudd wouldn’t last long in the ambassador role, were he to return to the White House. Of course, he now has returned.

Nationals leader David Littleproud it was a big test for the Prime Minister.

“This is a test for Anthony Albanese and Kevin Rudd to see and to make sure that we get a carve out,” he said.

“We have a very compelling story. We just signed a cheque for over US$500 million for AUKUS, we’re actually coming forward with the goods for the United States in terms of that AUKUS agreement.

“We’re paying our own way.”

Originally published as Donald Trump hints at steel tariff exemption for Australia after phone call with Anthony Albanese