‘Trump’s call’: Australia’s diplomatic assault over tariffs hits roadblock

Washington: US Treasury Secretary Scott Bessent has sung Australia’s praises as a trading partner but ducked responsibility for the decision on whether to grant an exemption to President Donald Trump’s planned tariffs, following high-level meetings with Australian officials.

Treasurer Jim Chalmers departed Washington without a verdict after meeting with Bessent and Trump’s senior economic adviser Kevin Hassett, part of a diplomatic assault by Australia as it tries to dodge 25 per cent tariffs on steel and aluminium imports due to start on March 12.

Treasurer Jim Chalmers, left, meets US Treasury Secretary Scott Bessent, National Economic Council director Kevin Hassett and Australian ambassador to the US Kevin Rudd.Credit: Australian embassy in Washington

Chalmers said the hour-long breakfast meeting, held at ambassador Kevin Rudd’s official residence, was “wide-ranging, positive and productive”, but “at the end of the day, this will be President Trump’s call”. He added: “My task here in DC wasn’t to try to conclude that discussion, it was to try to inform it.”

A “huge” part of the talks centred on critical minerals, Chalmers said, with Australia possessing 36 of the 50 priority minerals listed by the US. “We are interested in advancing with them some more concrete proposals around ensuring reliable supply of critical minerals,” he said.

Addressing a separate summit at the Australian embassy to showcase Australia’s vast superannuation pool, Bessent said there was “very little friction” between the two countries on trade. Unlike other trade partners, Australia did not manipulate its currency or put up other barriers to US firms, he observed.

However, when asked by Rudd whether that put Australia in a good position to avoid the proposed tariffs, Bessent would only say: “So far, so good. But I’m not USTR [United States Trade Representative].”

US Treasury secretary Scott Bessent said it was a case of “so far, so good” but he would not make the decision on a tariff exemption.Credit: Michael Koziol

Asked later by reporters, Bessent dodged all responsibility for the decision. “I think we’ll know more about that from USTR and [the Department of] Commerce. It’s not really a Treasury issue,” he said.

Speaking to an audience that included Bessent, US officials and delegations from Australia’s superannuation industry, Rudd stressed Australia’s commitment to free trade including with the US, its strategic location in the Indo-Pacific and reliability as a US wartime partner.

“We are an all-weather ally of the United States,” Rudd said. “Every single war that the United States has been in of a major nature since the First World War, of the last 100 years, we are the crazy guys in the foxhole next to you.”

Speaking to reporters at the end of his two-day trip, Chalmers noted the two countries’ foreign ministers, defence ministers and Treasury secretaries had now met face-to-face within the Trump administration’s first five weeks – a level of access “few, if any, countries” have enjoyed.

Officials from both countries talked tariffs over a breakfast meeting at the ambassador’s residence in Washington.Credit: Australian embassy in Washington

There was also the direct phone call between Trump and Prime Minister Anthony Albanese after which the president said he would give “great consideration” to a special exemption for Australia.

“I think it does augur well,” Chalmers said. “Australia’s got a free floating currency, we’ve got a very productive relationship between the steel and aluminium sectors in both countries, our products are often an input into domestic production here. BlueScope and Rio [Tinto] and others are making big investments in the US.

“We’ve got a different story to tell than other countries here in Washington, DC, when it comes to our case to be exempted from these tariffs. We’re also a very willing and long-standing defence partner.”

Chalmers said US officials did not raise concerns about Australia exceeding quotas on aluminium exports it agreed to adhere to under the previous Trump administration. “That didn’t come up.”

The meetings came as the London Financial Times reported Trump’s senior trade adviser Peter Navarro – a strong tariff enthusiast and critic of Australia – was pushing the president to expel close ally and neighbour Canada from the Five Eyes intelligence alliance amid the tariff skirmish.

Australia and New Zealand are also members of Five Eyes, along with the United Kingdom. Navarro dismissed the report as “crazy stuff” after it was published. Chalmers would not be drawn on it other than to say the Five Eyes network was critical to Australia and should remain intact.

Chalmers said he had not sought a meeting with Navarro on this trip, but Trade Minister Don Farrell would seek meetings with him, and the incoming USTR Jamieson Greer, whose confirmation is scheduled for this week.

Asked whether Albanese should go to Washington to make the case directly to Trump, Chalmers said any trip would be contingent on Albanese’s other plans, which includes an election to be held in the next few months.

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