Australia not given ‘best chance’ of tariff carve out, opposition says, as Donald Trump sends letters

Just because Australia is not getting a letter from Donald Trump does not mean the country is getting a “fair tariff”, the opposition says.

Australian goods may not be getting slugged with higher US tariffs, but that does not mean the country is getting the best deal possible, the opposition says.

Donald Trump has begun sending out letters to countries that failed to lock in new trading terms with the US.

The letters informed them their exports to the US would be hit with new tariff rates from August 1.

The countries included close allies Japan and South Korea, which both face 25 per cent imposts.

For others, the new rate is as high as 40 per cent.

Australia was not named among those facing “reciprocal tariffs” announced in April but was instead subjected to the universal 10 per cent taxes on all foreign imports – a position Anthony Albanese said he did not expect to change.

Opposition finance spokesman James Paterson said on Tuesday any tariffs on Australia were unacceptable but the Prime Minister had not given Australia the “best chance” of getting a carve out.

Australia looks as though it will stay on the Trump administration’s baseline 10 per cent tariff rate. Picture: Andrew Caballero-Reynolds / AFP

“The only fair tariff on Australia would be 0 per cent, and I hope that’s what we get,” Senator Paterson told Nine’s Today.

“But we haven’t given ourselves the best chance of securing that from the Trump administration because the Prime Minister has not even met President Trump now, seven months after he was elected.

“In stark contrast to other world leaders, like the UK Prime Minister Keir Starmer who did secure an exemption from steel and aluminium tariffs for the UK because of the personal relationship that he formed with President Trump.

“I really hope the Prime Minister doesn’t leave it any longer before he forms that relationship and argues for the best case possible for our country.”

Opposition finance spokesman James Paterson says the ‘only fair tariff for Australia’ is 0 per cent. Picture: David Crosling / NewsWire

The UK and Vietnam are the only countries to secure deals with the Trump administration.

Though, neither have escaped the US President’s levies altogether, with Vietnam still subject to 20 per cent duties.

UK Prime Minister Keir Starmer has said his efforts to build a strong personal relationship with Mr Trump helped secure tariff leniency, particularly on automakers.

British cars were facing a 25 per cent rate, but that was dropped to 10 per cent.

Similarly, British steel and aluminium have remained at the initial 25 per cent rate, while Australian steel and aluminium have been swept up in the 50 per cent rate.

Speaking to reporters in Hobart, Mr Albanese said he was not worried about Mr Trump sending letters to mutual allies in the Indo Pacific.

“Tariffs are a penalty on the country that is imposing them because what they require is for goods to be purchased with a tax on top,” he said.

“And the US has made that decision. Australia has a tariff rate of 10 per cent, which is at least as low as any country in the world.

“No country has a better deal than Australia and we’ll continue to put our case that tariffs are an act of economic self-harm and that we should be entitled to reciprocal tariffs, which are zero.”

Prime Minister Anthony Albanese says he is not worried about the US hiking tariffs on allies in the Indo Pacific. Picture: NewsWire / Martin Ollman

Meanwhile, Assistant Treasurer Dan Mulino suggested Australia could benefit from Mr Trump’s tariffs.

Citing Productivity Commission analysis, he said Australia could have an advantage over other countries because “if we’re lower than other countries, that might present opportunities for us to increase our trade with the US”.

“In some situations, the tariffs the US imposing might also offer opportunities for us to secure goods from other countries that might be redirecting their trade to other parts of the world,” Mr Mulino told Sky News.