Trump signs tariff order after PM says Australia exemption ‘under consideration’
Peter Dutton has hit back at Donald Trump’s move to slap levies on steel and aluminium despite assuring the PM an exemption for Australia was “under consideration”.
Peter Dutton has slammed Donald Trump’s move to slap brutal blanket tariffs on steel and aluminium imports “without exemptions or exceptions”, shortly after giving assurances a carve out for Australia was “under consideration”.
The Opposition Leader has repeatedly said he was better placed than Anthony Albanese to deal with a Trump White House, but on Tuesday struck a bipartisan chord.
“The tariff issue is an incredibly important issue for our country,” he told reporters in the Opposition Party Room.
“It’s important for the United States and the Trump administration to hear there is a bipartisan position in relation to the Prime Minister’s call to remove this tariff on a very close and dear ally of the United States.
“I want there to be a very clear message to the Trump administration that we don’t believe that this tariff should be put in place, and if it remains in place, then I believe it will damage the relationship between the United States and Australia.”
He went on to say Australia has “an incredible relationship with the United States”, pointing to the deep defence relationship that have spanned some 100 years.
The US President followed through with his pledge to impose 25 per cent tariffs on foreign steel and aluminium less than an hour after the Prime Minister made a public statement declaring an exemption for Australia was being considered.
Mr Trump hailed the impost as the “beginning of making America rich again” as he signed the executive order making them a reality.
“Our nation requires steel and aluminium to be made in America, not in foreign lands,” he told reporters in Oval Office.
“We need to create in order to protect our country’s future.
“With the resurgence of US manufacturing and production, the likes of which has not been seen for many decades.
“It’s time for our great industries to come back to America, I want them back to America.”
Shortly before, the Prime Minister said he held “a very constructive and warm discussion” with Mr Trump during which he got assurance an exemption for Australia was being considered.
Although Mr Trump said initially, that “it’s 25 per cent without exemptions or exceptions,” he then said an exemption for Australia was under consideration in reply to a reporter’s question.
“We actually have a surplus. It’s one of the only countries which we do,” Mr Trump, who had described Mr Albanese as a ‘very fine man’ after their call.
“And I told him that that’s something that we’ll give great consideration to.”
‘Under consideration’
Mr Trump’s move is a blow to the Albanese government, which is already weathering grim predictions of its ability to navigate the unpredictability of a Trump White House.
NewsWire understands the move caught US diplomats off-guard.
“Our steel and aluminium are both key inputs for the US-Australia defence industries in both of our countries,” Mr Albanese told reporters in the Prime Minister’s Courtyard, just before Mr Trump signed his executive order.
“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 of our countries.”
This morning I had a great conversation with President @realDonaldTrump
— Anthony Albanese (@AlboMP) February 10, 2025
We committed to working constructively together to advance Australian and American interests, drive economic prosperity and face shared challenges.
For decades, the Alliance between the United States and… pic.twitter.com/92884sewyD
The consideration appeared a win for Mr Albanese, all eyes will be on his government to lock in an exemption.
“We’ll continue to engage diplomatically, and we of course will use all of the human assets at our disposal,” he said.
“Australians will always stand up for Australia’s interests, and we will do that.
“We’ll continue to put the case.”
Minns defiant
NSW is home to both Australia’s biggest steelworks and aluminium smelter.
BlueScope’s Port Kembla Steelworks produces some 3 million tonnes of steel each year.
Meanwhile, Tomago Aluminium in the Hunter Region produces 590,000 tonnes of aluminium annually.
Both facilities employ thousands each directly, and support tens of thousands of jobs indirectly.
Asked about the US levies, NSW Premier Chris Minns said Australia was “prepared to do competition with the world” and did not need to rely on tariffs to “prop up” industry.
“Our steel and aluminium sector competes with everybody on a like for like basis,” he told the NSW Lower House.
“We don’t put tariffs on inbound imports, and we expect other countries to do exactly the same thing.”
He said that Australia “competes no matter what, no matter what the circumstances”, but warned North American trade war was “not good for anyone”.
“We want to make it clear as a trading nation, that Tomago aluminium, the largest smelter in Asia Pacific, located just outside Newcastle … that employs 1000 people, exports 90 per cent of what it generates to other countries,” Mr Minns said.
“No tariffs, 90 per cent outbound.
“BlueScope’s Port Kembla steel works produces 3 million tonnes of steel per year.
Again, not competing against anyone else or competing against other people on a like for like basis.
“Not relying on tariffs to prop up the industry, just well run, good businesses with decent steel workers that have, in many cases, put their professional lives into these jobs.”
‘Insult’ to Australia
A US congressman and key AUKUS player has labelled the tariffs as “almost an insult to the Australian people”.
Democrat Joe Courtney, the co-chair of the Congressional AUKUS Working Group, came to Australia’s defence in a speech on the floor of the US House of Representatives overnight, ahead of Mr Trump’s executive order.
“The US economy has a trade surplus with Australia. We export more into Australia than they export back to us,” Mr Courtney said.
“They have been a signatory with a free-trade agreement with no tariffs.”
He pointed out the Australia-US alliance goes “back to World War One”, saying it was “probably the most deep and strong of any other nation in the world”.
Deputy Prime Minister Richard Marles was in Washington last week for high level defence talks and to formally confirm the transfer of US$500m ($800m) to bolster the US industrial base.
It was the first instalment of a total US$3bn ($4.8bn) as part of Australia’s commitment to AUKUS.
“Two days later, what do we see?” Mr Courtney asked in his speech.
“Now a 25 per cent tariff on steel and aluminium products coming from Australia into the US at a time when we have a surplus with Australia.
Australia is a key strategic ally for our country. They are positioned in the Indo-Pacific at a place where, again, tensions are sky high.”
Mr Courtney said Washington need Australia’s “help in terms of making sure that we are going to rebalance that security environment and protect the rule of law in the Indo-Pacific”.
“Instead, what we’re seeing is a completely needless, almost insult to the people of Australia by raising tariffs on Australian products coming into this country at the same time, we are working with them, and they are buying three nuclear submarines,” he said.
Mr Courtney also vowed his party would “do everything we can to make sure that this administration changes course and treats our friends and our allies with the respect that they deserve”.
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