Trump’s tariff plan called out in Congress as ‘insult to Australians’
Washington: President Donald Trump’s plan to impose a 25 per cent tariff on steel and aluminium imports, including those from Australia, has been branded an “insult” to Australians who are funding the US submarine industry.
Democratic congressman Joe Courtney, who co-chairs the Friends of Australia Congressional Caucus, pointed to Australian taxpayers’ injection of $US3 billion into US shipbuilding capabilities as part of the AUKUS defence pact – the first $US500 million ($800 million) of which was paid last week.
US congressman Joe Courtney with Australia’s ambassador to the US, Kevin Rudd.
“The first cheque was delivered on Friday … and two days later what do we see? A 25 per cent tariff on steel and all products coming from Australia into the US,” Courtney said in the US House of Representatives. “What we’re seeing is a completely needless, almost insult, to the people of Australia.”
The comments came just before Prime Minister Anthony Albanese spoke to Trump on Tuesday morning AEDT in a scheduled call and made the case for a tariff exemption for Australia. Albanese called it a “great conversation” and said Trump agreed to state publicly that an exemption was under consideration.
There would also be a summit at Australia’s embassy in Washington DC later this month, Albanese said, which would be attended by senior US officials and representatives of Australian superannuation funds that were looking to make significant investments in the US.
More than $1 billion worth of goods are potentially exposed to the tariff plan, with Australia sending $640 million worth of steel and $440 million of aluminium to the US last year, according to US trade data.
As highlighted by Albanese and other Australian ministers recently, Courtney noted the US maintains a trade surplus with Australia along with a free trade agreement since 2002.
“By all the measurements president Trump talks about – trade issues, that we’re being ripped off by other countries – in this [Australia’s] case, every one of those arguments fails,” he said.
“We will 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.”
Courtney also emphasised that as part of AUKUS, Australia had committed to buy three US Virginia-class nuclear-powered submarines at “full price, no gimmes, no giveaways”. The contribution Australian taxpayers were making to US shipbuilding would not only assist in the production of those boats but bolster US national security, he said.
“Australia is a key strategic ally for our country,” Courtney said, noting the importance of Australian co-operation in the Indo-Pacific to address tensions over territory, security and influence.
Albanese’s phone call with Trump was their first interaction since Albanese congratulated the president on his election victory in November. But Australia has already made the case for free trade during a number of high-level visits to Washington, including Foreign Minister Penny Wong meeting Secretary of State Marco Rubio the day after the inauguration, and Defence Minister Richard Marles meeting his counterpart Pete Hegseth last week.
Trump has not announced the details of his plan for tariffs on steel and aluminium, but foreshadowed the move while talking to reporters on board Air Force One on Sunday (Monday AEDT), and indicated he would have more to say about the matter within days.
Canada – which was threatened with 25 per cent across-the-board tariffs before Trump pressed “pause” after extracting some extra commitments on border protection – is now back in the tariff firing line as the supplier of about a quarter of US steel imports and the vast majority of its aluminium.
Ontario Premier Doug Ford said Trump’s latest tariff gambit was unnecessary and would hurt both countries. “China is sitting back laughing, and the whole world’s laughing watching two of the closest allies in the world go at each other,” he told CNBC on Monday (Tuesday AEDT). “It just doesn’t make sense.”
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