Australian steel spared from Trump's tough tariffs

Australian steelmaker BlueScope says it is ready to "refocus and get back to business" after US President Donald Trump confirmed the company would be indefinitely exempt from his tough new import tariffs under an in-principle agreement.

The Trump administration this year announced 25 per cent tariffs on steel and 10 per cent on aluminium shipped into the United States, but gave temporary exemptions to several countries including Australia.

The Turnbull government sought exemptions for Australia's BlueScope during a visit to Washington DC.Credit: Alex Ellinghausen

As the exemptions expired on Tuesday, the White House confirmed the Trump administration had postponed decisions on imposing tariffs on Canada, the European Union and Mexico, but had reached in-principle agreements with Australia, Argentina and Brazil for indefinite exemptions.

BlueScope managing director Mark Vassella said he was pleased with the announcement.

"It has been a very uncertain 15-month period for BlueScope's trans-Pacific trade," Mr Vassella said.

"We are very pleased with the president's declaration of a permanent exemption."

BlueScope and Turnbull government leaders have been pressing the White House for an exemption for the company, making the case that BlueScope is not "just a straight exporter", as its steel from Australia was processed on arrival and converted into higher-value product at its US west-coast operations.

BlueScope exports 300,000 tonnes of hot rolled coil to the US a year.Credit: Adam McLean

Bluescope employs thousands of American workers and has nearly $3 billion in local assets in the US.

"We understood the US industry’s unfair trade concerns, but we were never part of the problem," Mr Vassella said. "In fact, we are part of the solution — because we supply Port Kembla steel to our own factories in the US, and employ more than 3000 Americans.

The risk of import tariffs had raised concerns over BlueScope's 300,000 tonnes of hot roiled coil it exports to the US every year, and volumes at its US west-coast facilities.

In a joint statement, Mr Turnbull and Trade Minister Steve Ciobo said the exemption reflected the "fair and reciprocal" trade relationship underpinned the "unbreakable friendship" between Australia and the US.

"This exemptions supports both Australian and US jobs and will ensure our trade relationship continues to grow in a fair and reciprocal manner," they said.

Mr Vassella said BlueScope was pleased with the "great team effort to secure this deal".

“Obviously, we are very pleased all the close work with the Prime Minister, Minister Ciobo, Ambassador [Joe] Hockey and key DFAT trade officials over the last 15 months has worked out," he said.

"So now it’s time to refocus, and get back to business."

One of Mr Trump's strongest campaign pledges was to revive American heavy manufacturing and he has invoked national security imperatives as a reason to protect the country's domestic steel making capacity.

''They're dumping steel and destroying our steel industry, they've been doing it for decades and I'm stopping it," he said last year adding there were "two ways" to do so, "quotas and tariffs ... maybe I'll do both".