Anthony Albanese to speak to Donald Trump after US President flagged 25 per cent tariff on steel, aluminium

Malcolm Turnbull says Australia should not expect the US to not impose tariffs just because of the “special relationship” between the countries.

Anthony Albanese has a call scheduled with US President Donald Trump and lobby for Australia to be exempt from sweeping 25 per cent tariffs on steel and aluminium.

Mr Trump’s announcement wiped $15bn off the ASX, with the benchmark ASX200 tumbling 0.5 per cent at the opening bell in the first hour of trading.

During question time on Monday, the Prime Minister confirmed he had “scheduled” a call with the new president, and said ongoing conversations would be handled “diplomatically”.

“Australian companies have significant investments in US steel industry creating thousands of jobs in both the US and in Australia,” he said.

“We will continue to make the case for Australia’s national interest with the US administration and, what’s more, we regard this as also being in the US national interest as well, because tariffs of course don’t tax us, they tax the purchasers of our products.

“And that is something that is very clear and it’s also a fact that the US has had a trade surplus with Australia since the Truman presidency.”

US President Donald Trump has confirmed a new 25 per cent tariffs on steel and aluminium imports will be announced on Monday. Picture: Jim Watson / POOL / AFP)

But former prime minister Malcolm Turnbull, who talked Mr Trump out of imposing tariffs on Australia during his first term, had some advice for Mr Albanese.

“Do not be misled by the idea that there’s any altruism in Washington towards Australia. Australians love to delude themselves to this,” Mr Turnbull told 7.30 on Monday.

“If we want to be respected, we have to stand up.

“The United States government, especially with Donald Trump, acts in the national interest of the United States.

“So we’ve got to be able to make the case that it’s against their interest to impose tariffs on us.”

Mr Turnbull said he would consider using what he called the “one-sided” AUKUS submarine deal to retaliate if he were PM.

“We should think very seriously about the payments that we’re making to support their submarine industrial base,” he said.

“We’re sending them $US3bn to support this, their sort of languishing submarine industry, with no guarantee that we’ll get any submarines at all.”

Malcolm Turnbull has advised Anthony Albanese to stand up to Donald Trump. Picture: NewsWire / Martin Ollman

Anthony Albanese has a scheduled phone call with President Trump in the next few hours. Picture: NewsWire / Martin Ollman

The US imported about $638m worth of Australian steel in 2024, the UN’s COMTRADE database shows, and major ASX-listed companies like Rio Tinto would be exposed to the duties.

President Trump said he would formally announce the fresh trade war slug on Monday US time and the taxes would hit “everybody”, suggesting Australia will not be exempt from the fresh trade war slug.

“Steel. Any steel coming into the United States is going to have a 25 per cent tariff,” he told a reporter.

He also said aluminium would be slapped with a 25 per cent tariff.

A tariff is a tax placed on imports and it means Australian steel and aluminium exports to the US will become more expensive for buyers and so likely reduce demand for them.

Steep tariffs can effectively cripple exports and if the duties are imposed, Australian industry will be heavily impacted.

NewsWire understands the federal government has been involved in urgent meetings with Trump officials and advisers for months to avert any imposition of steel and aluminium tariffs.

Trade Minister Don Farrell, reacting to the announcement on Monday, said the government had “consistently made the case for free and fair trade” to their American counterparts.

“We have consistently made the case for free and fair trade, including access into the US market for Australian steel and aluminium,” he said.

“Our bilateral economic relationship is mutually beneficial – Australian steel and aluminium is creating thousands of good paying American jobs, and are key for our shared defence interests too.”

Trade Minister Don Farrell said the government had made representations to the Trump administration on steel and aluminium. Picture: NewsWire / Martin Ollman

Australia had earlier dodged the tariff threat during the first Trump administration.

President Trump threatened tariffs in 2017, but former Prime Minister Malcolm Turnbull and former US Ambassador to the US Joe Hockey secured an exemption in 2018 after months of advocacy, with President Trump focusing his trade antagonism on China.

The US is Australia’s third-largest export market for aluminium after South Korea and Japan.

Economist Stephen Innes said Asian markets were scrambling for their “trade war helmets” on Monday morning.

“Trump’s latest move isn’t merely another trade skirmish. It’s an escalation of his ‘America First’ trade doctrine where ‘no country is off limits’,” he said.

“This high-stakes gamble could disrupt global supply chains.”

Australia had earlier dodged the tariff threat during the first Trump administration from 2017-2020.

President Trump then exempted Australia, along with Canada, Mexico, the EU and the UK, from US tariffs on steel and aluminium exports, focusing his trade antagonism on China.

eToro market analyst Josh Gilbert told NewsWire on Monday morning the tariffs had come as “a bit of a shock” but President Trump might also potentially reverse them, particularly if there was a sustained negative reaction from stock markets.

“When he had his term last time, he was very market focused,” Mr Gilbert said.

“That was a big thing that stood out for him. I think he uses that as one of his key elements of being a good President.

“So these do come as a bit of a shock but we know he puts threats out there and they can be reversed.

“But there is still going to be an impact to US consumers and businesses.”

Shock started rippling through Australia’s political circles and business community on Monday morning.

Crusader Caravans has just broken into the US market with an order of 50 Australian designed and made vehicles bound for Florida.

The firm also has two more prospective dealers looking to buy – deals that could offer orders of up to 300 vans and supercharge the business.

That represents roughly 15 per cent of the vans Crusader build annually.

“If a tariff is imposed, the cost of getting those caravans across to the across to the US increases,” director Michael Paidoussis told NewsWire.

“So what are the business implications? We’ve got to either absorb the cost or pass it on to customers.

“In an environment where cost of living and discretionary items not necessarily top of mind, it’s more about absorbing than passing it on and that, obviously, is an issue.”

But Mr Paidoussis said it was also about supply chain issues.

Crusader Caravans could reconsider their re-entry to the US market if its vans are hit with tariffs. Picture: Supplied

“Both in Australia and the US, we participate in global supply chains that involve getting parts or materials across multiple borders,” Mr Paidoussis said.

“Those tariffs threatened to be introduced, they can increase complexity and certainly cost.”

He said the uncertainty may force Crusader to rethink its entry to the US market.

“From our point of view, if the tariff was significant and substantial, we may reconsider our potential entry,” Mr Paidoussis said.

Nationals Leader David Littleproud said it was incumbent on the Labor government to petition the Trump administration to ensure Australia was not affected by the tariffs.

However he said he did not support retaliatory tariffs from Australia, calling for a “rules-based order of trade”.

“We’re trading nation, and I can tell you that tariffs not even imposed on us, but imposed on other parts of the world still have inflationary impacts for us in what we consume,” he said.

“It’s important that we encourage and use our place in the world to encourage all countries to adhere by (rules-based order of trade) because a tariff war will not benefit anybody, and Australia will not be immune from that.”

While he wished Australia’s US ambassador Kevin Rudd “ every success,” he believed past negative social media commentary made by Mr Rudd could affect the negotiations.

Mr Littleproud added that Australia should “leverage” Australia’s longstanding alliance with the United State, including the AUKUS partnership, which has been backed in by the Trump administration.

Major Australian companies like Rio Tinto are exposed to US steel and aluminium tariffs. Picture: NewsWire / Sharon Smith

“This is a moment where the Albanese government will be held to account about their ability to deal with the new president,” he said.

“When you make disparaging comments about leaders in other parts of the world, sometimes it comes back to bite you, and unfortunately, it could be the Australian economy that gets the bite.”

The Coalition’s trade spokesman Kevin Hogan said Mr Rudd must be able to broker the same result as former US ambassador Joe Hockey, who was able to negotiate an exemption under former prime minister Malcolm Turnbull.

“A critical component was a strong ambassador – we had Ambassador Hockey who helped Australia to successfully negotiate exemptions from United States steel and aluminium tariffs,“ she said.

“The Ambassador to the US is one of the most critical diplomatic roles Australia has. Albanese hand-picked Kevin Rudd for this position. Albanese and Rudd have a big job to do here.”

Emergency Services Minister Jenny McAllister said the Australian government would “continue to advocate for our interests,” pointing towards meetings between senior Australian ministers and members of the Trump administration.

“I think in these situations, we’re always focused on what is best for Australians, (and) communicating that really clearly,” she told Sky.

“And I think you’ve seen a deep level of engagement from our most the most senior in the government.”

In January, Foreign Minister Penny Wong secured a meeting with US Secretary of State Marco Rubio, and Deputy Prime Minister Richard Marles met with US Defence Secretary Pete Hegseth over the weekend.

Mr Albanese also spoke with Mr Trump days after his re-election to the White House in November last year.

Originally published as Anthony Albanese to speak to Donald Trump after US President flagged 25 per cent tariff on steel, aluminium