By Natassia Chrysanthos
Treasurer Jim Chalmers is heading to Washington, DC, to talk trade and tariffs with the United States treasury secretary as Australia seeks an exemption to President Donald Trump’s steel and aluminium tariffs.
Chalmers said he did not expect his one-on-one with Scott Bessent – their first meeting since the former investor and fund manager took up his role in Trump’s administration – to bring an end to negotiations.
Treasurer Jim Chalmers will spend the beginning of this week in Washington, DC.Credit: Alex Ellinghausen
Australia has been lobbying for a dispensation from Trump’s plan to impose 25 per cent tariffs on steel and aluminium amid fears of a damaging hit to jobs and exports. Trump has suggested a carve-out for Australia is under consideration but a final decision is due within weeks.
“Trade and tariffs will be part of the conversation, but not the whole conversation,” Chalmers said on ABC’s Insiders on Sunday.
“That is an ongoing discussion that we’re having with our American counterparts. I don’t expect we will conclude those discussions on steel and aluminium while I’m in DC.
“But whether it’s the flow of capital or critical minerals and trade, there’s lots to talk about. This is a relationship which benefits both sides, the Americans and the Australians.”
The treasurer’s visit to Washington also coincides with a superannuation showcase convened by ambassador Kevin Rudd at the Australian embassy, where Australian super funds will push to build ties with US businesses. More than a third of foreign private market investment from Australian super funds goes to the US.
“That’s all about stronger returns for Australians from stronger ties with the American economy,” Chalmers said.
Chalmers said he would not pre-empt the outcome of the tariff discussions, but pointed to a phone conversation between Trump and Prime Minister Anthony Albanese this month, as well as visits to the US by Defence Minister Richard Marles and Foreign Minister Penny Wong.
“[They] have met with their counterparts already. I think that augurs well for the strength of the relationship,” he said.
Chalmers said Australia’s growing defence spend would also be part of the case it made to the Americans, as Trump pushed US allies to invest more in defence, particularly in Europe.
The treasurer also denied that the government’s intervention in bailing out South Australia’s Whyalla steel mill would bring on further threats from Trump, saying 90 per cent of the plant’s steel was already used for domestic purposes in Australia.
“Obviously, there is an ongoing conversation about tariffs on steel, and every country that produces steel and aluminium is thinking through the consequences,” he said.
“Our relationship with the US is a mutually beneficial one … The Americans run that big trade surplus with us and so they have nothing to fear from the responsible steps we’re taking in Whyalla.”
But as the world braces for Trump’s expanding trade war, the federal government is also shoring up Australia’s domestic manufacturing industry, including by saving Whyalla.
Chalmers did not confirm the government would introduce quotas for local steel to be used in major Australian projects but said it was “thinking through all the options when it comes to procurement”.
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