‘Dumpers’: Donald Trump’s right-hand man takes aim at Australia and warns expect more tariffs
Donald Trump’s most senior trade adviser has delivered an on-air rant about Australia as fears grow of more tariffs.
Donald Trump’s most senior trade adviser Howard Lutnick has delivered an on-air rant about Australia, accusing it of flogging aluminium “dirt cheap” as fears emerge that the GST could lead the US to slap a 10 per cent tariff on all Australian exports.
As Australian officials scramble to respond to the US President’s 25 per cent tariff on aluminium and steel, it’s the threat of even more tariffs that has the world worried.
Speaking on Fox Business, US Commerce Secretary Howard Lutnick singled out Australia for criticism overnight, accusing it of being part of the problem by dumping cheap aluminium into the market.
“Look, you’ve got dumpers in the rest of the world. Japan dumps steel. China dumps steel. What that means is, they make it, they overproduce and they sell it dirt cheap, 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.
“So, this concept that, oh, prices are going to rise … you’ve got to remember, President Trump is playing for the strength of America, and we’re not going to stand for China, dumping, Japan dumping, or Australia does a lot of aluminium below cost.
“This has got to end and the President is on it.”
Threat of reciprocal tariffs hitting Australia
The US President has warned he will slap “reciprocal tariffs” on any country from April 2.
In theory, Australia should be in the clear because we don’t impose tariffs on any American imports.
However, the GST applies equally to imported and domestically produced goods, raising fears that the US could try to hit us with a reciprocal tariff.
“Let’s get to reciprocal tariffs. If other countries want to bring their tariffs down, we will bring ours down,” Mr Lutnick said.
“We can’t really bring them down, we just won’t bring them up because ours are so low as it is, but the idea is, reciprocal is coming April 2. Doesn’t that sound fair to you?”
It remains unclear how a tariff that is equivalent to the 10 per cent GST could be applied or even if the US does plan to act on the GST.
However, it could involve a new tax on US consumers if they buy Australian goods.
Mr Lutnick warned that there were more tariffs to come.
“And then on April 2, he does his reciprocal tariffs, which basically say to all the countries in the world, come on,” he said.
“You treat us a certain way. We’ll treat you the same way. Let’s make it fair. You want them high. They’ll be high, like they are now. You want them low, they’ll be low, but let’s treat each other fairly. Pretty basic. Pretty straightforward.”
What will it take to get the tariffs removed?
Asked “what will it take” to get those tariffs removed, Mr Lutnick said President Trump regarded steel and aluminium as fundamental to national security.
“We can’t be in a war and rely on steel and aluminium for some other country,” he said.
“So the President wants steel and aluminium in America. And let me be clear, nothing’s going to stop that strong aluminium capability.
“And by the way, he’s going to add copper to that mix, too. Remember, national security rises above all other things.
“People get lost in this stuff. We must have steel and aluminium. We must have semiconductors. We need to have cars and automobiles.
“We need to make these things in America. We need to make pharmaceuticals in America. The President has called them out because he knows these things are vital to be made in America.”
Recession fears
As a result, the price of aluminium and steel and copper has already started to rise. Mr Lutnick was asked if this could bring on a recession.
“Let’s take a step back and remember inflation, right, it comes from a government printing too much money,” he said.
“You don’t get inflation from having a tariff, because what a tariff says is, if it’s made in Europe, if it’s made foreign, it costs.
“It might cost a little more, but that which is made in America does not cost more.”
Mr Lutnick was then pressed on the fact that domestic producers can’t keep up with demand. The supply is limited. Demand is strong. The price is going up.
“Some foreign steel will go up, for sure, but then they will build those plants in America,” he said.
“Our plant production in America is only operating at 50-55 per cent. That’s got to get up to 80 per cent. We’ll put the orders in America.”
Dutton’s warning on fresh tariff threat
Speaking on the Today show, opposition leader Peter Dutton said the threat of even more tariffs was concerning.
“These are all real, live issues,” he said.
“But the Prime Minister can’t put his case because he can’t secure a phone call or a meeting with the President. He’s the only quad leader who hasn’t been to Washington to meet with the President in person. And it also comes off the back of, frankly, you know, years of personal abuse by Anthony Albanese and Kevin Rudd and Penny Wong of Donald Trump.
“So what did they expect? But we have to have a strong functioning relationship with the US, even if we disagree with what the President’s done and the Prime Minister just doesn’t have that relationship.”
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