Trump airs concern at surge in Australian aluminium exports

United States President Donald Trump has fired another warning shot over a surge in Australian aluminium exports to his country, reviving concerns that almost led him to impose tariffs on the products six weeks ago.

Mr Trump and his top officials raised the aluminium trade in their private dinner with Prime Minister Scott Morrison last week on the sidelines of the G20 summit in Osaka.

President Donald Trump.Credit: Bloomberg

The talks highlighted the frustration in the Trump administration at the strong increase in the aluminium exports, said to have risen 350 per cent in the first quarter of this year compared to the same period last year.

Mr Trump mentioned a "trade situation" with Australia in his public remarks at the beginning of his meeting with Mr Morrison but the concern about aluminium during the private talks was not revealed last week.

Australia successfully avoided the sudden imposition of US tariffs on steel and aluminium last year when Mr Trump agreed to an exemption in the face of arguments from former prime minister Malcolm Turnbull and the Australian ambassador to Washington, Joe Hockey.

But The New York Times reported on June 2 that US officials wanted the exemption on aluminium to be removed because the Australian exports had grown so quickly.

Mr Trump's trade advisers wanted the tariffs to be applied but Defence Department and State Department officials cautioned against offending a top ally, the newspaper reported.

Sources told The Sydney Morning Herald and The Age that the concerns over aluminium were raised during the Osaka dinner but that Mr Trump was "a long way from upset".

US President Donald Trump and Prime Minister Scott Morrison at the G20.Credit: Alex Ellinghausen

Mr Morrison had several talks with Mr Trump when the two spoke informally during the G20 summit, and the US listed the Prime Minister as one of the "nice" leaders at the event during a press conference on the final day.

Trade Minister Simon Birmingham said on Sunday that he did not expect any change to the US treatment of Australian steel and aluminium.

"The arrangements that were struck previously, we understand, will continue," he told the ABC's Insiders program.

"We're working to make sure that all aspects of those arrangements, including ensuring that there aren't surges of Australian exports into the US in those categories where we've got the tariff exemption, are honoured.

"And we're working closely with companies to deliver outcomes there that preserve that agreement, and we don't expect to see, based on the discussions we've had, any changes to the terms of that agreement."