New bid to avoid tariffs as US accuses Australia of undercutting aluminium prices in trade dispute
The Albanese government has presented a new proposal to try and win over Donald Trump as the US commerce secretary took a nasty swipe at Australia.
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Australia’s critical minerals has been used as leverage in a bid to win over US President Donald Trump and avoid tariff hits.
The Albanese government’s proposal involves a guaranteed supply chain of processed minerals and investment funds for new projects, according to The Australian.
Australia’s ambassador to the US Kevin Rudd discussed the plan with Commerce Secretary Howard Lutnick ahead of Mr Trump’s tariff decision on Wednesday.
“We were led to believe by Lutnick that this is what they wanted,” a senior government source told The Australian.
Trade Minister Don Farrell said he was “extremely disappointed that our generous offer was not accepted”. “Australia was offering a comprehensive critical minerals package in exchange for tariff free access to US markets,“ he said.
The package is expected to be central to Australia’s case ahead of Mr Trump’s April 2 reciprocal tariffs announcement, which could impact many Australian products including medicines, meat, seafood and other food exports.
‘DUMPERS’: AMERICA’S NASTY SWIPE AT AUSTRALIA OVER TARIFFS
It comes after US Commerce Secretary Howard Lutnick accused countries including Australia of “dumping” aluminium exports, the practice of selling products at a lower price in a foreign market than its domestic market.
Mr Lutnick was heavily involved in talks over whether to grant Australia an exemption from steel and aluminium tariffs and met with Ambassador Kevin Rudd in the days before the decision was made.
Speaking on Fox News, Mr Lutnick accused foreign producers of being “dumpers” and undercutting American companies.
“Japan dumps steel, China dumps steel, what that means is they make it, they over produce and they sell it dirt cheap to try to drive our guys out of business,” he said.
“The President is here to protect American workers, he’s here to protect American industry, we’re going to stop that nonsense and bring steel here.
“We’re not going to stand for China dumping, Japan dumping - Australia does a lot of aluminium at below cost.”
“I mean, this has got to end and the President is on it, and he’s protecting America.”
Mr Lutnick is a close advisor of Mr Trump and travelled with the President to his Mar-A-Lago compound in Florida at the weekend, hours after his unsuccessful meeting with Mr Rudd.
It comes as Foreign Minister Penny Wong has revealed on live TV that she learned about the US denying Australia a tariff exemption from the media, with Today Show host Sarah Abo calling it “humiliating.”
When pressed on breakfast TV about how she received the news, Senator Wong emphasised that she had always recognised the slim chances of securing an exemption this time.
But she was then asked by Sarah Abo “did you find out about this through the president’s press secretary yesterday, along with the rest of the world?.”
“Well, that was when I first heard confirmation of the reports,” Senator Wong replied.
“But you would have heard my language over the last couple of weeks. I pointed out that we had a much harder hill to climb. We obviously know we had a very difficult set of negotiations, and we threw everything at it. But we did understand that fundamentally.”
Earlier, Senator Wong defended Anthony Albanese’s response to US President Donald Trump’s steel and aluminium tariffs, stating that if Australia were to retaliate we should simply be making the “same mistakes” as the US.
Mr Trump yesterday snubbed a request from the government for an exemption to the tariffs, a move Mr Albanese lashed as “entirely unjustified”.
Speaking on Sunrise, Ms Wong was asked if the PM could have done more to secure an exemption, including meeting with Mr Trump in Washington, DC face-to-face.
“I think it’s pretty clear that the government, from the prime minister down, has been working overtime to try and land this deal,” she said.
“The reality is, as we know from what the White House has said, they reckon that the exemption they gave last time to Australia and other countries was a mistake. So this time they were very clear that they didn’t want any exemptions.”
Wong reiterated the government would not impose reciprocal tariffs in response, because it would be the everyday Australian who bears the cost.
“Well, we made clear we’re not going to go down that path. The reason is we don’t want to add to people’s cost of living. The reality is, tariffs are a tax on, they make things more expensive for the people buying things,” she said.
“We aren’t going to make the same mistakes and make Australians pay more.”
She said Australia would continue work towards making sure the US continues to honour the Free Trade Agreement for beef exports.
“We invite Mr Dutton and the opposition to back Australia here,” the Foreign Minister told Seven’s Sunrise.
“Mr Dutton has a chance to stand up for Australia. Instead, he stands for political opportunity.
“I would say to him, you’ve got a chance over the next few weeks.
“Back Australia, back buying Australian. Back Australia in our campaign to try and ensure that beef … and other products continue to enter the US free of tariffs.”
Meanwhile, former ambassador to the US, Arthur Sinodinos said Australia’s close relationship was not over with the US but that we needed to take care in how we pitch our position.
“It’s not over, but we’re in a phase where the US is into really overt transactionism. That means they look at everything through the prism of how it impacts the US. So in dealing with the US in our own interests, we have to pitch our arguments in terms of what’s in it for the US,” he told Sunrise.
“And on defence and security, we get a lot out of the relationship, but we’ve also got to persuade the US how essential the security relationship with Australia is for their own security. So I wouldn’t give up on the relationship.”
It comes as former foreign minister Bob Carr said Australia should not follow in the footsteps of Canada and Europe to slap tariffs on US imports.
Despite lobbying by Prime Minister Anthony Albanese, Australia has failed to obtain an exemption from America’s 25 per cent tariffs on steel and aluminium
However, Mr Carr told ABC’s 7.30 Report it would not be a wise move to hit back.
“I don’t think we should have retaliatory tariffs directed at America. But I do think it’s an opportunity to begin to explore with the French the alternative to AUKUS,” he said, referring to the submarine security partnership.
“Because it’s now accepted wisdom that in the early 2030s, America won’t be building enough Viriginia-class submarines to peel off three to five and give them to us.
“I think that, given the inevitability, we’re entitled to say we’re reopening discussions with the French about getting lethal and affordable submarines that would make this country untouchable.
“The Turnbull deal had a lot going for it. AUKUS is just too complex and is fading fast.”
Mr Carr said US President Donald Trump never had any intention of giving his Aussie mates preferential treatment.
“We shouldn’t delude ourselves that America regards us as special,” he said.
“Poland, France, the UK and Israel above all see themselves as special.
“We delude ourselves if we think Australia has a special relationship with the US.
“Trump is simply confirming we don’t count for that much at all and we better adjust to that reality.”
Mr Carr, who also served as NSW Premier for the Labor Party, said it was time for Australia carefully consider its foreign policy objectives.
“Australia has grown very lazy and the partnership with America has become the biggest part of our international character.
“We need to reduce that and become more nimble and a more powerful diplomatic presence (that) we’re entitled to, given our economic strength.”
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Originally published as New bid to avoid tariffs as US accuses Australia of undercutting aluminium prices in trade dispute
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