‘Big hill to climb’: Treasurer’s frank admission on Trump’s tariffs
Treasurer Jim Chalmers has conceded it will be “hard” to guarantee a tariff exemption for Australia, despite his high-profile meeting in Washington DC.
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Treasurer Jim Chalmers has conceded it will be “hard” to guarantee a tariff exception for Australia, despite his “positive” meeting with US Treasury Secretary Scott Bessent in Washington DC last week.
Speaking to Sky News, Dr Chalmers said he was able to make a “compelling” case to the Trump administration over why Australia should be exempted, but said there was still a “big hill to climb”.
“We’re under no illusions, it will be hard,” Dr Chalmers told Sunday Agenda.
“This is a big hill to climb, it will be harder this time than last time, but I was really grateful to Secretary Bessent, and also Director (Kevin) Hassett for making the time to run through the arguments for an Australian exemption.”
Dr Chalmers said the Americans “heard out” his arguments, but would not make any predictions on an outcome of the meeting.
It came after Dr Chalmers’ comments last week in which he hailed his talks in Washington DC with his American counterparts as productive and constructive, declaring he had “no reason to believe” the US was no longer a reliable partner for Australia.
Just hours after Dr Chalmers’s meeting, however, Mr Trump unveiled plans for new tariffs on copper, potentially embroiling another $60m worth of Australian exports to the US.
Mr Trump agreed earlier this month to consider carving out Australia from tariffs on steel and aluminium after a call with Prime Minister Anthony Albanese.
Grateful to US Treasury Secretary @SecScottBessent and National Economic Council Director Kevin Hassett for a really productive and positive meeting in Washington this morning.
— Jim Chalmers MP (@JEChalmers) February 25, 2025
We had a wide-ranging discussion, from the flow of capital to critical minerals and trade.… pic.twitter.com/V65KNY7O0H
He then unveiled a sweeping plan for reciprocal tariffs which would also target non-tariff trade barriers such as value-added taxes and levies on US tech giants, sparking fears Australia could be embroiled because of the GST and the proposed news media levy.
In a diplomatic breakthrough, Dr Chalmers said the threat of reciprocal tariffs was not raised during his meeting with Mr Trump’s Treasury Secretary Scott Bessent and National Economic Council director Kevin Hassett.
They instead focused on Australia’s push for a carve-out from steel and aluminium tariffs.
Asked about this after the meeting by Australia’s ambassador to the US Kevin Rudd, Mr Bessent said: “So far, so good, but I’m not USTR” – a reference to the US Trade Representative.
Speaking at an event at Australia’s embassy, Mr Bessent there was “very little friction” between the allies on trade, unlike other countries that the President has targeted with tariffs since he returned to power.
The Treasury Secretary later told reporters of the prospect of a reprieve for Australia: “We’ll know more about that from USTR and Commerce – it’s not really a Treasury issue.”
Dr Chalmers said Australia had a “very, very good story to tell” on the trade concerns raised by the Trump administration, given it had not imposed tariffs or non-tariff trade barriers, or manipulated its currency.
‘We genuinely believe an exemption would be in the interests of both countries,” the Treasurer told reporters, saying Australia was an “exceptional” case compared to others.
The Treasurer did not seek a meeting in Washington DC with the President’s trade adviser Peter Navarro, who has blamed Australia for killing America’s aluminium industry and alleged a verbal commitment to limit exports to the US had been ignored in recent years.
Dr Chalmers said that issue was not raised by Mr Bessent or Mr Hassett.
“It was clear to us before the meeting, during the meeting and after the meeting that this call will be made by President Trump on the advice of senior figures in his administration,” he said.
“We take no outcome for granted. We’re not getting carried away with the progress we’ve been able to make.”
The Treasurer maintained the US-Australia alliance was “as strong as its ever been” and that he had “no reason to believe” America under Mr Trump would be an unreliable partner.
Shortly after Dr Chalmers spoke to reporters, the President moved to order an investigation into imposing new tariffs on copper, with his Commerce Secretary Howard Lutnick saying the American industry had been “decimated by global actors”.
Mr Lutnick said there would be “no exemptions, no exceptions” to any new tariffs as he declared: “It’s time for copper to come home.”
Australian companies sent $60m worth of copper to the US in 2023.
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Originally published as ‘Big hill to climb’: Treasurer’s frank admission on Trump’s tariffs
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