By David Crowe, Michael Koziol and Olivia Ireland
The Trump administration has accused Australia of breaking a promise to limit aluminium exports in a dramatic challenge to Prime Minister Anthony Albanese over his bid to gain an exemption from American trade barriers that could slam the economy.
The White House made the claim in the proclamations issued for punitive 25 per cent tariffs on steel and aluminium, after United States President Donald Trump told Albanese he would consider granting Australia an exemption.
The sharp criticism reveals the case being made by White House officials to ensure the tariffs are imposed without exceptions following a dispute over the special treatment Australia received when Trump announced similar tariffs in his first presidency.
Albanese emerged from a 40-minute phone call with Trump on Tuesday morning, Canberra time, with an undertaking from the president to consider the exemptions.
Trump confirmed the agreement soon afterwards when he signed the trade orders at the White House, saying he would give “great consideration” to the Australian case without mentioning the aluminium dispute.
With exports and jobs at stake, the formal proclamations revealed the White House claim that the previous Australian government had promised to put a limit on aluminium exports and that this was a reason for imposing the new sanctions.
“The volume of US imports of primary aluminum from Australia has also surged and in 2024 was approximately 103 per cent higher than the average volume for 2015 through 2017,” the proclamation said.
“Australia has disregarded its verbal commitment to voluntarily restrain its aluminum exports to a reasonable level.”
Former prime minister Malcolm Turnbull, who negotiated the carve-outs for Australia in 2017 and 2018, told this masthead he gave no such assurance and the discussion at the time focused on steel.
But the aluminium dispute flared when Scott Morrison became prime minister and met Trump at a G20 summit in Japan in 2019, after White House trade officials Robert Lighthizer and Peter Navarro alerted the president to an increase in Australian aluminium exports.
The accusation threatens to deepen a dispute with the US over trade when the Australian government cannot point to any written agreement to cap aluminium exports and may question why a discussion in 2019 or earlier could be used to punish Australian industry years later.
President Donald Trump after signing an executive order for 25 per cent tariffs on steel and aluminium imports into the US.Credit: Bloomberg
Trump said he would consider exempting Australia from the tariffs on steel and aluminium after a call with Albanese that ranged across the security and economic relationship between the two countries.
The president signed executive orders to impose the steel and aluminium tariffs within hours of the phone call and declared there were “no exceptions” – highlighting the challenge for Australia in gaining special treatment.
“It’s 25 per cent without exceptions or exemptions, and it’s all countries, no matter where it comes from,” he said in a live broadcast from the White House.
Moments later, Trump added that he had spoken to Albanese and described the prime minister as a “very fine man” when asked about whether Australia would get an exemption. Trump said he would give “great consideration” to Australia but remained coy on whether it would be exempt.
“I just spoke to him,” Trump said of Albanese. “A very fine man. He has a surplus. 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. I told him that that’s something that we’ll give great consideration to.”
Mixed messages
Australia was already singled out for criticism during a briefing on steel and aluminium tariffs before the president signed the executive orders as White House officials blamed foreign aluminium producers for flooding the US market from Australia and Canada.
Navarro, an architect of the tariffs imposed in the first Trump presidency and a top adviser in the current administration, said the latest tariffs “would put an end to foreign dumping, boost domestic production and secure our steel and aluminium industries”.
Trump holds up the executive order outlining the steel and aluminium tariffs.Credit: AP
“This isn’t just about trade, it’s about ensuring that America never has to rely on foreign nations for critical industries like steel and aluminium,” he said.
The US and Australian sides have offered no clarity on the steps toward a final decision on any carve out, leaving Australia exposed to the unpredictable nature of the Trump administration. The president is imposing major trade barriers on China, Canada, Mexico and the European Union.
Positive PM
Albanese revealed the talks with Trump on Tuesday morning in Canberra, shortly after the phone call, and emphasised his message to the president about Australian investment in the US and how it would create American jobs.
“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 our countries,” Albanese said.
Prime Minister Anthony Albanese at a press conference in Canberra on Tuesday after speaking with Trump.Credit: Alex Ellinghausen
Albanese also revealed there would be a gathering at the Australian embassy in Washington, DC, on February 24 and 25 with “senior US representatives” joining Kevin Rudd, Australia’s ambassador to the US.
The timing makes it challenging for Foreign Minister Penny Wong or Trade Minister Don Farrell to attend given the Senate meets that week for estimates hearings.
Asked about the next steps, Albanese said: “We’ll continue to engage diplomatically, and we, of course, will use all the human assets at our disposal. Australians will always stand up for Australia’s interests, and we will do that, we will continue to put the case.”
However, the prime minister avoided being too positive when asked if he was confident the exemption would be granted.
“The words that I’ve used are the words that I’ll stick to. And it’s appropriate when dealing with the president of the United States to not speak on his behalf,” he said.
“They are the words that are agreed. They’re the words that I’ll stick to. And I can say, though, that it was a very positive and constructive discussion.”
‘Damage the relationship’
Opposition Leader Peter Dutton held a snap press conference in Canberra to warn the US would damage the relationship with Australia if it imposed trade barriers.
“I want there to be a very clear message to the Trump administration that we believe this tariff should not be put in place and if it remains in place I believe it would damage the relationship between the United States and Australia,” he said.
When Trump imposed tariffs on steel in his first administration, then-prime minister Malcolm Turnbull gained an exemption by telling Trump the tariffs would only increase the cost of roofing in California without saving American jobs.
Australia’s four aluminium smelters employ 21,000 workers and about 10 per cent of the nation’s Australian aluminium is exported to the US each year.
Australia potentially has more than $1 billion worth of export revenue exposed to Trump’s proposed tariffs, having exported $640 million worth of steel and $440 million of aluminium last year, according to US trade data.
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