The Australian Chamber of Commerce and Industry says it is very disappointed by the decision. Photo: stock
Australia will not retaliate in kind after US President Donald Trump confirmed a 25 per cent tariff will apply to Aussie steel and aluminium imports.
Prime Minister Anthony Albanese described the US decision as “concerning”.
“Such a decision by the Trump Administration is entirely unjustified,” he says.
He says tariffs and escalating trade tensions are economic self-harm and a recipe for slower growth and higher inflation.
“This is why Australia will not be imposing reciprocal tariffs on the US. Such a course of action would only push up prices for Australian consumers,” he says.
Albanese says they will continue to lobby for exemptions “at every level and through “every channel” as his government talks to the Australian steel and aluminium industry.
“Australia has no tariffs on goods from the US.”
Albanese also flagged greater efforts to diversify into other countries.
“… we will continue to diversify markets for our products which are in demand globally,” he says.
Albanese says steel and aluminium exports to the US are less than 0.2 per cent of the total value of Australian exports.
“Neither is in the top 10 of what Australia sells to the US,” he says.
He also raised a ‘buy local’ campaign along the lines of Canada’s boycott of US products.
“The March Budget will provide additional support for our Buy Australian campaign.”
REACTION
The Australian Chamber of Commerce and Industry (ACCI) says the US decision is “deeply disappointing” and will harm local steel and aluminium exporters.
“Imposing trade barriers between the US and Australia will reduce trade, and harm businesses and consumers,” ACCI chief executive officer Andrew McKellar says.
“Australia and the US signed a Free Trade Agreement in 2005 … for enhancing trade, and these tariffs run counter to that agreement.”
He says the ACCI will keep working with the Federal Government and partner organisations here and in the US.
“We now need to monitor any ill-effects of these tariffs, direct and indirect, to ensure that business and policymakers have the best understanding of how to move forward,” McKellar says.
In a recent brief statement, BlueScope Steel noted that it had invested in the US for 30 years and recently spent $2 billion on acquisitions and brownfields expansion there.
It says it is the fifth largest steel producer in the US, employing 4000 workers.
- Marghanita Johnson, CEO of the Australian Aluminium Council says they will also keep working with the government.
“Bauxite, alumina and aluminium are globally traded. There are interdependencies in these supply chains,” she says.
The council says Australia exports 10 per cent of its 1.5 metric tonne aluminium produced annually to the US while Australia takes about 2.5 per cent of US aluminium imports.
