Failed bid for a US tariff exemption sparks fear in Aussie ag

US President Donald Trump said “there will be no exemptions” ahead of new tariffs coming into force on Thursday.

A tariff exemption for Australian food products imported into the US looks increasingly unlikely following President Donald Trump’s decision not to grant a carve out for the nation’s aluminium and steel exports.

The White House has confirmed Australia will not be given an exemption from US tariffs of 25 per cent on aluminium and steel imports when they come into effect on Thursday, despite desperate attempts from the Albanese government to wrangle special treatment given the two nations’ historically close alliance.

US President Donald Trump considered a tariff exemption for Australia, but decided against it. Photo: Mandel NGAN / AFP

White House press secretary Karoline Leavitt told Nine Entertainment that President Trump “considered it, and considered against it” and finally decided “there will be no exceptions”, leading Australia’s agricultural sector to fear it will be dealt the same treatment.

Prime Minister Anthony Albanese said the Trump Administration’s decision not to grant Australia an exemption “is entirely unjustified”.

“This is against the spirit of our two nations’ enduring friendship and fundamentally at odds with the benefits our economic partnership has delivered over more than 70 years,” he said.

Mr Albanese said negotiations to reverse the decision were not over, and that his government would continue to put forward “a very strong case” for an exemption “at every level and through every channel”.

He said no reciprocal tariffs would be imposed so as not to push up prices for Australians, and flagged funding in the federal budget later this month for a “Buy Australian” campaign.

For the past few weeks, the Albanese government has pushed the narrative that a tariff exemption should be granted for Australia given it is one of the few nations the US runs a trade surplus with.

But that argument ground to a halt on Tuesday, with the US’ 70-year trade surplus ending following a surprising surge in gold imports from Australia in January, new trade data shows.

Cattle Australia has called on the federal government and the Coalition to “push back” against protectionist economic policies such as the US’ planned tariffs for food imports, which are expected to come into force on April 2.

“Promoting free trade and market access is a fundamental issue for Australia’s grass-fed beef producers,” CA chief executive Chris Parker said.

New Meat and Livestock Australia market data shows beef exports increased by 24 per cent in the last year, and that 76 per cent of beef produced in Australia in 2024 was exported.

The National Farmers’ Federation described the US’ decision on steel and aluminium imports from Australia as a concerning development.

“Australia’s agricultural trade with our ally, the US, is underpinned by the Australia-United States Free Trade Agreement, which has ensured tariff-free trade for 20 years,” NFF president David Jochinke said.

“The NFF, along with our members, is monitoring the unfolding global trade situation closely and supporting the Australian Government’s efforts to engage with our trading partners in a considered manner. We encourage all sides of politics to work together in the interests of Australian producers.”

Agriculture Minister Julie Collins is yet to comment specifically on the unfolding issue looming for Australian farmers over potential ag tariffs. However, she said recently the Albanese Government was working hard to ensure exports could continue to the US.

Plans were afoot for Trade Minister Don Farrell to travel to the US last week to seek tariff exemptions for Australia, but it appears they were scuttled by Senate estimates hearings.